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The agreements that were reached at the Bretton Woods conference in 1944 established a system

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The agreements that were reached at the Bretton Woods conference in 1944 established a system

▸ in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading.

▸ of floating exchange rates determined by the supply and demand of one nation's currency relative to the currency of other nations.

▸ of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed-upon value of its currency.

▸ that prohibited governments from intervening in the foreign exchange markets.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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