Explain the Bretton Woods system and its role in the economic expansion of the post-1945 era. What were the implications of this system for the United States?

In 1944 the Bretton Woods system was established for the economic expansion of the post-1945 era. The implications of this system for the U.S were that it was given a managerial role of the Bretton Woods system, and a role that would be accepted by the world that the U.S would be the new hegemon. But, like it brought the U.S into power it will also bring it into decline by 1971, with the end to the Bretton Woods system.


In 1944 the leaders of the Capitalist West met at Bretton Woods, New Hampshire, to discuss the needs of a new system that would be a reliable mechanism to determine the value of one countries currency with another’s. This new international monetary ‘system’ known as the Bretton Woods system would be concerned with the mechanisms of governing the interaction between trading nations, and in particular between money and credit instruments of national communities in foreign exchange, capital, and commodity markets. As a result, the Bretton Woods sys...