730 delegates from the 44 Allied nations were preparing to rebuild the international economic system while World War II was still raging, and gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, USA, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. Delegates debated from 1 to 22 July 1944 and signed the Bretton Woods Agreement on its final day. The creation of a system of rules, institutions, and procedures for regulating the international monetary system created the IMF and the International Bank for Reconstruction and Development (IBRD), now part of the World Bank Group. The United States, which controlled two-thirds of the world`s gold, insisted that the Bretton Woods system be based on both gold and the U.S. dollar. Soviet representatives attended the conference, but later refused to ratify the final agreements and lamented that the institutions they created were “branches of Wall Street.”  These organizations began their work in 1945, after a sufficient number of countries had ratified the agreement. By studying an international financial career, specialists learn about the impact of international agreements such as Bretton Woods and the institutions they have created. The establishment of a sound international financial strategy implies anticipating the effects of announcements and measures taken by central banks, carried out in the same way by national governments and international bodies. However, the intensification of state intervention in the domestic economy has led to isolationist atmospheres that have had a profoundly negative impact on the international economy. The priority of national objectives, the independence of national action in the interwar period and the failure to realize that these national objectives could not be achieved without any form of international cooperation, all this led to a policy of “Beggar thy Neighbor” such as high tariffs, devaluations of competition that contributed to the collapse of the international monetary system based on gold, internal instability and international war. The lesson we have learned has been, as Harry Dexter White, the principal architect of the Bretton Woods Dealer System, put it: the shift towards a more pluralistic distribution of economic power has caused growing discontent with the privileged role of the US dollar as an international currency.
As, in fact, the central bankers of the world, the United States, have determined by their deficit the level of international liquidity. In an increasingly interdependent world, U.S. policy has strongly influenced economic conditions in Europe and Japan. As long as other countries were willing to hold dollars, the United States could spend heavily abroad for political purposes — military activities and foreign aid — without the risk of balance of payments restrictions. It was not until 1958 that the Bretton Woods system became fully operational. Once implemented, its provisions required the U.S. dollar to be tied to the value of gold. In addition, all other currencies in the system were then linked to the value of the US dollar. The exchange rate applied at the time set the price of gold at US$35 per ounce. Members had to repay their debts over a period of 18 months to 5 years. In return, the IMF has begun to put in place rules and procedures to prevent a country from sinking too deep into debt year after year.
The Fund would “monitor” other economies for the U.S. Treasury in exchange for its loans in support of national currencies.