Bretton Woods

Definition

Bretton Woods is the name given to the international monetary system established in 1944, which set up rules and institutions for commercial and financial relations among major industrial states. It led to the creation of the International Monetary Fund (IMF) and the World Bank to promote economic stability and cooperation globally.

Related terms

International Monetary Fund (IMF): An international organization that aims to promote global financial stability, encourage international trade, and reduce poverty around the world.

World Bank: An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Gold Standard: A monetary system where a country's currency or paper money has a value directly linked to gold, but was abandoned under the Bretton Woods system in favor of fixed exchange rates