A Primary Result Of The Bretton Woods Agreement Was

Despite the economic efforts imposed by such a policy, participation in the international market centre has given the United States unprecedented freedom of action in pursuing its foreign policy objectives. A trade surplus facilitated the maintenance of armies abroad and to invest outside the United States, and as other nations could not maintain operations abroad, the United States had the power to decide why, when and how to intervene in global crises. The dollar continued to serve as a compass to guide the health of the global economy, and exports to the United States became the main economic objective of the development or new development of economies. This arrangement was called Pax Americana, analogous to the Pax Britannica of the late 19th century and the Pax Romana of the first. (See globalism) It is important to note that the implementation of many of the contents of the agreement was included in the IMF, and that if it did not exist, the agreement would not have been able to shed light on the world. The strengthening of the relative decline in American power and The dissatisfaction of Europe and Japan with the system was the continued decline of the dollar, the basis that had supported the global trading system after 1945. The Vietnam War and the government`s refusal of U.S. President Lyndon B. Johnson to pay for it and its Grand Corporation programs through taxation resulted in an increase in outflows of dollars to pay for military spending and widespread inflation, resulting in a deterioration in the U.S. trade balance.

In the late 1960s, the dollar was overvalued with its current position, while the German mark and the yen were undervalued; And of course, the Germans and the Japanese did not want to revalue their exports and thus increase them, while the United States tried to preserve its international credibility by preventing devaluation. [41] Meanwhile, the pressure on government reserves has been exacerbated by new international foreign exchange markets, with their huge pools of speculative capital in search of quick profits. [40] The creation of agreed structures and rules for international economic interaction has minimized conflict on economic issues and the importance of the economic aspect of international relations appears to have weakened. Under the Bretton Woods system, each exposure currency had a known value in U.S. dollars or gold. Each person could convert their foreign currency into dollars, and anyone who owns a dollar could turn their dollar into gold. According to the agreement, the value of the dollar was set at 1/35 of an ounce of gold. Holders of British pounds could convert them into dollars, at a rate of $4.03 per pound sterling. This made it easy for each person to know what their money was worth compared to other currencies in the agreement. However, the increasing state intervention in the national economy has led to a sense of isolationism that has had a profoundly negative impact on the international economy.