Question

Explain the role of Bretton Woods institutions in post-Second World War settlement.

Answer 1

The main aim of the post-war international economic system was to preserve economic stability and full employment in the industrial world. Its framework was agreed upon at the United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods in New Hampshire, USA.

• The Bretton Woods conference established the International Monetary Fund (IMF) to deal with external surpluses and deficits of its member nations.

• The International Bank for Reconstruction and Development (popularly known as the World Bank) was set up to finance post- war reconstruction.