The experience of the First World War was fresh in the minds of public servants. Bretton Woods` planners hoped to avoid a repeat of the Treaty of Versaille after the First World War, which had created enough economic and political tensions to lead to World War II. After the First World War, Britain owed the United States considerable sums that Britain could not repay because it had used the funds to support allies such as France during the war; The Allies were unable to repay Britain, so Britain could not repay the United States. The solution at Versailles for the French, the British and the Americans finally seemed to be related to the emigrant from Germany for the debt in La Bouche. If the claims on Germany were unrealistic, it would be unrealistic for France to win back Britain and Britain to take back the United States. [3] Thus, many “assets” on banks` international balance sheets were irrecrepit loans that culminated in the banking crisis of 1931. The creditor countries` uncompromising insistence on the repayment of allied war debts and reparations, coupled with a propensity for isolationism, has led to the collapse of the international financial system and a global economic depression. [4] The so-called “beggar-your neighbour” policy, recent studies indicate that this de facto inflationary policy would likely offset some of the competitive forces of the global price level (see “How to Prevent a Currency War”). Before the war, the French and British realized that they could no longer compete with American industry in an open market. In the 1930s, the British created their own economic bloc to eliminate American products. Churchill did not believe that he could renounce this protection after the war, so he watered down the “open access” clause of the Atlantic Charter before accepting it.

The agreement also facilitated the creation of very important financial structures: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), now known as the World Bank. To foster the growth of world trade and post-war financing of Europe, Bretton Woods planners created another institution, the International Bank for Reconstruction and Development (IBRD), one of the five agencies that make up the World Bank Group and is perhaps now the main agency [of the World Bank Group]. IbRD had an authorized capitalization of $10 billion and had to borrow from its own resources to finance private loans and issue securities to raise new funds to enable a rapid post-war recovery. The IRD should be a special UN agency responsible for providing loans for economic development. As part of the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar. If a country`s monetary value became too low against the dollar, the bank would buy its currency back on the foreign exchange markets. Two world wars had destroyed the country`s main industries, which paid for the import of half of the food and almost all of its raw materials except coal. The British had no choice but to ask for help. It was only when the United States signed a 4.4 billion pound British aid agreement on 6 December 1945 that the British Parliament ratified the Bretton Woods Agreements (which took place later in December 1945). [24] The Bretton Woods Agreement was concluded in 1944 at a summit in New Hampshire, USA, on a website of the same name.

The agreement was reached by 730 delegates representing the 44 allied nations who participated in the summit.