Emergence of the Modern Exchange Rate System
9.3 Understand the emergence of the modern exchange rate system.
During much of the period from the late 1800s through the 1920s, global trade grew significantly. The Great Depression (1929–1939) and World War II (1939–1945) coincided with a collapse of the international trading system and relationships among nations. Following the war, several countries came together to energize international commerce and devise a framework for stability in the international monetary and financial systems. In 1944, the governments of 44 countries negotiated and signed the Bretton Woods Agreement.
The Bretton Woods Agreement
This agreement pegged the value of the U.S. dollar to an established value of gold at a ...
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