🏛️ The Bretton Woods Conference and Its Legacy

📍 Location:

The United Nations Conference of Bretton Woods, held in New Hampshire (USA), led to the establishment of the IMF and World Bank.

💱 The Bretton Woods System (1944)

• Established a system of fixed exchange rates.

• The U.S. dollar was pegged to gold at $35 per ounce.

• Other major currencies were pegged to the U.S. dollar.

⚠️ Nixon Shock (1971)

• In 1971, U.S. President Richard Nixon suspended the convertibility of the dollar into gold.

• This event is known as the Nixon Shock.

• It ended the gold standard and destabilized the global monetary system.

📉 Collapse of Bretton Woods (1973)

• The foundation of the Bretton Woods system collapsed shortly after the Nixon Shock.

• By 1973, the world transitioned to the modern era of floating exchange rates.