Question

What steps were taken by the economists and politicians of the world to meet the global economic crisis that arose after World War II?

Answer 1

• Second World War disabled the economic conditions of many European countries
• According to economists and politicians, the necessary conditions for revival of economy were intervention of government in stabilising the economy by regularising prices, solve deficit crisis in the war affected countries etc
• As a result Bretton Woods conference established International Monetary Fund (IMF) to manage financial crisis of its member countries
• The World Bank was formed to finance after- war crisis in affected countries
• As per this Woods conference foreign exchange rates were fixed to Gold