How did Bretton Woods system work?

The Bretton Woods system worked via banks artificially adjusting the value of their currency so that their currency would remain stable relative to the US dollar. Countries involved in the Bretton Woods agreement, (Allied Nations from WWII), agreed that they would print money to lower their price or withdraw currency to raise the price of their currency so that it remained artificially pegged to the US dollar.

 

Back to Bretton Woods System

Back to All Questions