The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia, and Japan after the 1944 Bretton-Woods Agreement.
Before World War II, the United states had hte largest gold reserves in the world
This combined with winning WWII, let the US reconstruct the global monetary system around the dollar
Bretton Woods Outcomes
Tied the currencies of almost all countries to the US Dollar
Currencies were tied at a fixed exchange rate
Tied the value of the US dollar to $35 per ounce of gold
Resulted in the US Dollar becoming the world's primary reserve currency
Forced other countries to use and store US dollars for international trade or exchange with the US government for gold
Warnings and Disclaimers
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