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Bretton Woods Conference

Definition

The Bretton Woods Conference was a meeting held in 1944 where representatives from 44 countries came together to establish a new global financial system after World War II. They agreed on the creation of the International Monetary Fund (IMF) and the World Bank.

Analogy

Imagine you and your friends organizing a group project at school. You all meet up to discuss how you can help each other succeed. Just like that, representatives from different countries met up at the Bretton Woods Conference to discuss how they can work together to improve global finances.

Related terms

International Monetary Fund (IMF): An international organization established at the Bretton Woods Conference that aims to promote global monetary cooperation, stabilize currencies, and provide financial assistance during economic crises.

World Bank: Also established at the Bretton Woods Conference, it is an international financial institution that provides loans and grants to developing countries for development projects such as infrastructure improvements and poverty reduction.

Global Financial System: The framework of institutions, markets, rules, and regulations that facilitate global flows of money, investments, and trade. It includes organizations like IMF, World Bank, central banks, and stock exchanges.