Changes

The Bretton Woods economic system or monetary regime was a short-lived economic system, but it played a vital role in the formation of the post-World War II order and continues to affect geo-politics and economics in many ways. The system lasted from 1945 until 1973 and is thought of by many economists and historians as the primary reason for the peace and prosperity of the mid-twentieth century. Under the Bretton Woods economic system, the world experienced generally low unemployment, no major economic collapses, inflation that was controllable, smaller national imbalances, and much less of a wealth gap. The Bretton Woods system was also responsible for the creation of the International Monetary Fund (IMF) and the World Bank and paved the way for a new era of globalization that was led by the American dollar.