Jump to ContentJump to Main Navigation
Money in the Western Legal TraditionMiddle Ages to Bretton Woods$
Users without a subscription are not able to see the full content.

David Fox and Wolfgang Ernst

Print publication date: 2016

Print ISBN-13: 9780198704744

Published to Oxford Scholarship Online: April 2016

DOI: 10.1093/acprof:oso/9780198704744.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 24 June 2021

The Bretton Woods System

The Bretton Woods System

Design and Operation

(p.611) 28 The Bretton Woods System
Money in the Western Legal Tradition

Peter Kugler

Oxford University Press

The System designed at the conference at Bretton Woods in July 1944 (BWS) was the first full attempt to establish an international monetary system with fixed but adjustable exchange rates based on an international treaty. The International Monetary Fund (IMF) was created for financing temporary deficits, and its members were obligated to fix their exchange rates and refrain from any restrictions on current international transactions but were allowed capital controls. The system was short-lived and collapsed in 1971. The possibility of exchange rate adjustment led to speculative capital flows which were not successfully controlled. In addition, the fixed link of the US dollar to gold with a falling real price of gold—led to substitution of gold for US dollars in international reserve and a convergence towards a dollar standard. This privileged role of the dollar and its use as an instrument for financing the Vietnam war was no longer accepted by economically successful countries in Western Europe and Japan.

Keywords:   Bretton Woods System, international monetary system, fixed exchange rates, International Monetary Fund, convertibility, capital controls, dollar standard

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .