- according to the locations of only two most important international conferences of the 1940s - the actual international structure of the world took shape not in two, but in four stages, at four international meetings: 1) in Bretton Woods (USA) in July 1944, where the foundations for regulating the post-war world economy were laid; 2) in Yalta(USSR) in February 1945, where the USSR, USA and Great Britain agreed on common approaches to the future political reorganization of Europe; 3) in San Francisco(USA) in April-June 1945, when the UN Charter was adopted; and finally 4) in Potsdam(Germany) in July 1945, when the three leading countries of the anti-Hitler coalition specified a common policy towards the defeated aggressor Germany and steps to rebuild Europe.

Valentin Katasonov. "The Secret Architects of the Bretton Woods System"

The main goal of the Soviet government was turning Eastern European countries into a protected security zone THE USSR. The United States paid attention to world economic issues, believing that they would eliminate the causes of aggressiveness from international relations. Washington believed that the war in Europe was due to the ruin of Germany after First World War and the impossibility of economic recovery in Europe in the interwar period due to trade wars and the reluctance of countries to agree among themselves in the interests of stabilizing the world economy. Experience of overcoming crisis 1929 – 1933 in the USA with the help government intervention inspired the idea that stabilization of the world economy as a whole could also be achieved with the help of global coordinating mechanisms.

The key ones were supposed to be three institutions: International Monetary Fund (IMF), International Bank Reconstruction and Development (IBRD) and the General Agreement on Tariffs and Trade (GATT). The IMF was supposed to ensure the stability of the international monetary system and provide financial assistance states in need. The IMF's biggest step was to restore a stable gold-dollar standard and fix fixed exchange parities for the world's major currencies. The IBRD was supposed to promote the development of lagging countries with loans and investments. GATT had the task of promoting the liberalization of international trade through the gradual reduction of customs tariffs and the abolition of foreign trade restrictions.

The conference for the creation of the IMF and the IBRD took place in the USA, in the city of Bretton Woods (New Hampshire), from July 1 to July 23, 1944. The signing of the GATT was delayed, it took place in Geneva in October 1947. Subsequently, the IBRD, along with the International Association development and some other institutions has become one of the main parts World Bank, although in the literature the expressions “World Bank” and “International Bank for Reconstruction and Development” are often used as synonyms. The IBRD and the IMF became parts of the UN system of institutions.

Since the 1940s, the GATT, together with the IMF and the World Bank, has formed a complex of world economic regulatory mechanisms, which is commonly called Bretton Woods system

Washington sought a compromise with Moscow, trying to involve it in the work of these bodies. USSR in 1944 – 1945 took part in the creation of the IMF, IBRD, European Economic Commission and a number of other international economic organizations. The United States was ready to agree to a significant presence of USSR representatives in the newly created bodies. According to the agreements reached at Bretton Woods, in terms of the size of the voting quota when making decisions in the IMF, the Soviet Union was in third place after the United States and Great Britain.

But the Stalinist leadership understood that, even despite such a quota, Soviet representatives would not be able to impose their projects on the Bretton Woods institutions, or even defend their positions on equal terms. The United States and other Western countries had a mechanical majority there, and the right of veto was not provided for. The possibility of penetration of foreign capital into the Soviet zone of influence in Eastern Europe, which could lead, due to the economic weakness of the USSR, first to the financial and economic, and then to the political loss of these territories.

Overestimating the revolutionary potential of post-war Europe, expecting the “collapse of capitalism” in the near future and overestimating the economic interest of American capital in economic cooperation with the USSR, Soviet leaders believed that the West would be compliant in dialogue with Moscow. These calculations did not come true.

At the end of 1945, the Soviet government notified the US administration that it did not intend to ratify the Bretton Woods agreements. In 1946-1947 Moscow avoided joining GATT. The USSR retained a free hand in the sphere of international economic relations, but found itself outside the framework of the global system of economic regulation.

The Bretton Woods monetary system was adopted after the end of the 2nd World War, the main idea was that all currencies had to adapt to the monetary units of the leading powers, most to a greater extent this concerned the USA. This system named after the conference of the same name, which took place on the territory of a famous resort in New Hampshire. It should be noted that this agreement contributed to the creation International Bank reconstruction and development and the IMF.

As for the reasons for the adoption of this currency system, such a need arose due to the poor development of the sphere of financial relations. The previous provisions simply did not meet the requirements of the time. In this regard, it was decided to create in principle new system, which would correspond to the then political and financial environment. The main program documents of the monetary system were legally formalized as the IMF charter.

It should be noted that during the conference under consideration, progress was made almost immediately, allowing significant progress in issues of international cooperation, which was absent in principle for a long period of time.

The provisions of the Bretton Woods monetary system were discussed during the discussion; of course, the most progressive ideas came from representatives of the USA and GB, since these countries suffered less from military operations. In the end, the wishes of the Americans were reflected as fully as possible in the program agreement; as for the positions of the British, they were only partially satisfied.

With the exception of the creation of today's most important financial institutions, the conference assumed the adoption of a program document that could regulate global monetary cooperation. As a result, specialists managed to develop a whole set of principles that formed the basis of this system:

• Gold retained its position as the primary asset that is, the precious metal was used for the purpose of international settlements. It should be emphasized that additional currencies are being introduced into circulation - USD and GBP, which were analogues of gold;
• The multilateral settlement mechanism is based on the free circulation of currencies of various states;
• A fixed parity is established, calculated in gold and USD;
• The exchange rates of the monetary systems of all participants in this conference are fixed, in other words, they are tied to the leading currency. As for the main currency, it is pegged to gold;
• The central banks of various powers undertake to contribute in every possible way to maintaining the exchange rate of the national currency; in addition, it must balance in relation to the main monetary system. Currency intervention is used as the main control tool;
• The transformation of currency quotes is carried out through subsequent devaluation or revaluation of the exchange rate;
• The International Monetary Fund is becoming the main link in international monetary relations. The IMF focuses on lending to states that need to eliminate balance of payments deficits for the subsequent normalization of the national currency. In addition, this fund monitors compliance by all conference participants with generally accepted principles of cooperation.

Why was the dollar chosen as the main currency?

Of course, the main reason for this choice is the stability of the American currency, not to mention the unconditional leadership of the United States in the economic sector. In addition, the Americans literally had a monopoly on most of the gold reserves. That is why it was decided to choose the American dollar as the main currency.

Controversial provisions of the Bretton Woods monetary system?

The Bretton Woods Conference tried to create a stable monetary system that would be subject to minor fluctuations. Contributing to the subsequent development of international relations in the field of finance, and in economically generally.

In the event that one of the parties takes measures to disrupt the balance of payments, after consultation of all participants, an appropriate penalty will follow, expressed in the form of a change in currency parity. Actually, this violation is regulated by the fourth article of the fifth section.

The problem is that in the program documents there is no precise interpretation of imbalances, which is why in the future this item was the subject of tough discussions between the International Monetary Fund and the countries participating in the Bretton-Woods-system.

Crisis of the Bretton Woods monetary system

It was previously determined that as a result of the conference in New Hampshire, a number of provisions were adopted that were supposed to contribute to the normalization of currency turnover. Of course, over time, the adopted regulatory principles became outdated, therefore, holders of the reserve currency could not comply with the powers they had assumed.

The main reason for the collapse of this currency system is that it was based solely on the dominance of England and the United States in the economic sphere, of course, that over time the situation changed, and in the 60s of the twentieth century the provisions adopted in 1944 were finally put to rest year.

The US gold and foreign exchange reserves were depleted at lightning speed, mainly foreigners were the holders of the dollar. Of course, such a situation could not satisfy the American government. Ten years later, gold reserves were redistributed, but this time in favor of Europe. Thus, the date of the final collapse of the currency system in question is considered to be the beginning of the 70s.

When World War II was ending and its outcome was clear, another invisible front was raging - financial. It was then that events occurred that glorified the small town of Bretton Woods, until then better known as a ski resort. It was here that a system was formed that operates within a number of states called the free world.

How did it all begin?

Before moving on to the main topic of the article, let's look at what preceded its emergence. Each international monetary system is a special type of agreement that prescribes the rules of the current interstate commodity and money turnover. This approach is needed to bring national monetary units to a certain common denominator and establish a standard of material value. This approach eliminates confusion when calculating imports and exports. The first attempt to restore order was the emergence of the Paris Monetary System. Although in fact it simply legally consolidated the situation that existed at the time of its formation. That is, gold acted as the universal standard. Because of this, the Paris system is often called the monetary-metallic system. It did not matter what attributes the gold coins whose profiles and coats of arms were minted on it had. Attention was paid only to weight. This system functioned quite successfully, although it was not without flaws. So, it was not easy to pay with bars and gold coins.

In addition, natural wear and tear occurred, and means of payment simply wore out. In addition, constantly carrying a bag of gold with you was dangerous and inconvenient. Also, such an approach was unprofitable, because countries that had mines and deposits quickly became rich. At the same time, their level of development did not matter. Moreover, transporting significant sums by sea was a hectic business. Therefore, drafts and bills gradually became increasingly popular. The Paris system collapsed during the roar of the guns of the First World War. Then countries began to carry out unlimited emission of paper substitutes that were already familiar at that time. This problem needed to be solved. And it was planned to achieve this goal with the help of the Genoese currency system. It involved the introduction of gold backing for the currencies used. There were fluctuations in exchange rates, but this approach made it possible to stabilize and streamline calculations and the situation in the markets. This system existed until the end of World War II. An interesting fact: during its creation, the United States limited itself to the role of an observer, while the USSR took the chance to declare the first proletarian state. By the way, you can often hear opinions that the Paris and Genoa systems were better than the Bretton Woods system, and that everything should be different. Alas, if you look at the specialized economic literature, which contains many indicators, you will find out that they were inconvenient given the rapidly growing population, as well as the significant growth in production then observed.

How was the Bretton Woods world monetary system created?

It did not arise out of nowhere. It was initiated by the US business elite, which sought world hegemony after the war. At the time the proposal was made, the American economy was at its peak. The World War allowed the flywheel of domestic production to spin up, which was further assisted by Roosevelt's reforms. Thus, by 1939, the consequences of the Great Depression had practically been overcome, military orders contributed to the revitalization of industry, and the shortage of products on the European continent (sometimes reaching famine) had a positive impact on Agriculture. In other words, there was every reason to lay claim to the role of world leader. The Bretton Woods financial system was supposed to consolidate the status quo for decades. The International Monetary Fund was originally created. It started its activities in 1947. Its founders included 44 states, but only the United States could act as a financial donor. Soon, many states were lining up to receive loans to improve economic situation in the country. Like any adequate creditor, the IMF demanded that the borrowed funds be repaid. And for this it is necessary that they be spent effectively. If difficulties arose, additional loans were provided to avoid a collapse of the national currency and default. Therefore, careful monitoring of the economic situation in the countries was introduced. In order to unify the interaction process, it was decided that it was necessary for the Bretton Woods world monetary system to be based on certain principles. The most important of these was the gold dollar standard.

About the principles

The stability of rates is extremely important condition functioning of the market. And the principles of the Bretton Woods monetary system took this fact into account. The only stable monetary unit at that time, sufficiently backed by yellow metal, belonged to the United States. For a dollar you could get 0.89 grams of gold at any time. Although the system itself proclaimed that it was a gold-currency system, in fact it was a gold-dollar system. American means of payment received the status of world money only after the war. Initially there weren't very many of them. For comparison: in the reserves of other countries they were only 1/10, while gold was ½, and the pound sterling of the British Empire was 4/10. But soon the dollar gained the leading position. This was facilitated by many factors, among which the most important role was played by good macroeconomic indicators and large gold reserves (three-quarters of the world's total). In addition, an impressive positive foreign trade balance, as well as the hegemony of American goods in the world, also contributed. All this contributed to the fact that the principles of the Bretton Woods system were accepted and enshrined in a number of documents. They looked like this:

1. The price of gold is strictly fixed and was thirty-five dollars per troy ounce.
2. Fixed exchange rates of all participating countries to the US dollar (the key currency) were established.
3. Changes in established indicators through devaluation or revaluation were allowed.
4. Central banks were supposed to maintain a stable exchange rate for national Money through currency interventions.
5. The organizational links of the created system were identified - the previously mentioned IMF and the International Bank for Reconstruction and Development.

What opportunities did this create?

Initially about changing rates. If devaluation was carried out, it was usually seen as a symptom of the unfavorable economic situation and led to an increase in the price of imported goods. But exports became more profitable. So this was a definite plus. Another positive point- this is receipt fast money. Thus, internal costs are reduced, and a symbol arises to produce goods here, and not where the currency is expensive. As a natural result, the volume is growing foreign investment. This point was well understood. Therefore, not only the stick in the form of the possibility of refusing loans and other sanctions measures was actively used, but also the carrot, which manifested itself in the form of a willingness to come to the rescue.

What's the point here? The Bretton Woods system assumed that when a country receives a loan, it undertakes obligations to maintain the exchange rate of the monetary unit. At the same time, it was established that fluctuations should not exceed one percent of the ratio established through the gold standard to the US dollar. In exceptional cases, it was allowed to increase the value of this figure to 10%. But if this threshold was exceeded, sanctions awaited the culprit. Foreign exchange interventions were used to regulate the exchange rate. To implement them, dollars were needed. The Federal Reserve was very willing to sell them. This is how the Bretton Woods system worked in its early years. In the second half of the forties, bright prospects opened up for the United States. The world was short of food, hygiene products, clothes, clothes and much more. Industrialized states lay in ruins. Since the early fifties, the economies of European countries began to grow rapidly.

What did this lead to?

The Bretton Woods system is based on significant US dominance. And, accordingly, without it its functioning would be problematic. But the behavior of the States was contradictory and unpredictable. One can recall the Marshall Plan, which contributed to the rise of European economies. It should be noted that it was a forced measure. On the one hand, it contributed to the growth of competitors. On the other hand, the impoverishment of the broad masses could lead to pro-Stalinist forces coming to power in a number of countries, and in a democratic, peaceful way. The US could not allow this to happen.

Despite the growth of European economies, the dollar confidently maintained its leading position. The boundless trust backed by gold seemed unshakable. At the same time, costs have also increased. In 1949, the People's Republic of China emerged. A year later, the Korean War broke out. It was attended by a large number of volunteers from socialist countries. They were armed with high-quality and numerous Soviet equipment. Formally, they were opposed by the joint forces of the UN, but in fact the main burden lay on the United States. The fall in foreign trade turnover and the increase in expenditure items forced the Federal Reserve System to launch the printing press at full speed. Thus began the crisis of the Bretton Woods monetary system. At the same time, the improvement in the economic situation of a number of countries contributed to the emergence of a need to regulate exchange rates. The main tool for this was currency interventions. If it was necessary to strengthen the national monetary unit, then a large number of dollars were thrown onto the market. If necessary, they were bought to weaken it. To a greater extent, devaluation met the interests of the countries, which is why it was implemented. The development of foreign exchange markets, increased capital flows and many other factors clearly indicated that the crisis of the Bretton Woods system would soon flare up with significant force. The first alarm bell appeared in 1965.

French incident

Financial analysts simply could not help but notice that a large amount of cash dollars are being put into circulation and exported abroad, and the economic situation in the United States is not very rosy. And the first sign in 1965 was the so-called French incident. De Gaulle, who served as president, remembered that the Bretton Woods system guaranteed the exchange of dollars for gold at a rate of $35 per gram. At that time France had simply astronomical gold and foreign exchange reserves. Namely, a third of a billion. This was not the best moment for the USA. The space race was going on, and the dirty, difficult and extremely expensive Vietnam War was ongoing. The Ministry of Finance tried to hint that exchanging such a sum was an unfriendly step. But De Gaulle was adamant. Dollars were exchanged. Soon, student unrest began in France, which resulted in a full-scale uprising. De Gaulle lost the presidency. Rumor has it that the United States had a hand in this as retaliation for such an act. But nothing could be changed. This is the beginning of the end. The crisis of the Bretton Woods system has begun.

What happened next?

As the US trade surplus declined, confidence in its currency declined. To smooth out the emerging contradictions, the IMF decided to create a special monetary unit - special drawing rights. It did not have gold backing, although formally it was equal in value to the dollar. This currency surrogate was used to implement mutual settlements debts between central banks countries that were members of the IMF. The crisis of the established system began to gain momentum. If all countries with dollar reserves began to demand gold, there simply would not be enough of it. In 1971, the agreement began to break down. All the circumstances suggested that we should expect an imminent devaluation of the dollar. West Germany, Holland and Belgium were the first to fail. These countries have introduced a floating exchange rate. It was determined by supply and demand in the foreign exchange markets.

Japan held out the longest - until September 1971. Since in fact the dollar could no longer be exchanged for gold, the concept of the “dollar standard” was introduced. There was a devaluation and the rate per troy ounce rose to $38. The gold standard Bretton Woods monetary system began to burst at the seams. It was clear that this figure was very arbitrary, and this was far from the end. And this was indeed the case - in 1972, an ounce of gold began to cost over $42. In the 70s, the Jamaican system took shape, which did not provide for parities and standards. Then all existing currencies were divided into three groups: hard, conditionally convertible and free. The Jamaican system gave rise to a situation that was very well described by one of the economists: ungrown wheat is sold for unprinted money. Now this is the situation that dominates throughout the world. Of course, if someone wants to buy gold, it is quite possible. But only at market prices.

What led to its collapse?

Bretton Woods economic system wasn't perfect. Increased inflation affected the competitiveness of firms, as well as world prices. All this encouraged speculative movements of money. Different inflation affected the dynamics of exchange rates, which created distortions. The instability of balances of payments, which manifested itself in the form of chronic deficits (Great Britain, USA) or surpluses (Japan, Germany), only intensified sharp fluctuations. Also, the principles of the Bretton Woods world system ran counter to the development of the whole world. After all, inflation-prone national currencies were used as the basis for it. Initially, they tried to solve this problem by involving Great Britain and establishing the pound sterling as a reserve reserve currency. But as the British Empire and the United States weakened, abuses emerged by these states, which took advantage of the status they received and used the printing press to cover deficits. The stability of reserve currencies was undermined.

Moreover, the right of holders of dollar bills conflicted with the ability of the United States to fulfill its obligations. Over two decades (1949-1971), their short-term debt increased by 8.5 times, while gold reserves decreased by 2.4. The US policy of “deficit without tears” undermined confidence in the dollar. The official price of gold, lowered in the interests of the United States, suddenly began to deviate sharply from the existing market situation. Interstate regulations did not help. Artificial gold parities were losing their meaning. Until 1971, the United States stubbornly refused to change course. All this only aggravated the distortions. Bretton Woods system exchange rates led to the fact that central banks had to intervene even to the detriment of national interests. That is, the United States shifted the responsibility of maintaining the established dollar exchange rate to other countries, which led to an aggravation of interstate contradictions. Due to existing restrictions on devaluation and revaluation, speculative activity has intensified. Weak currencies were predicted to decline, while strong currencies were predicted to rise. Regulation through the IMF has borne virtually no fruit. His loans did not allow him to cover even temporary deficits and support national currencies.

Final stage of operation

The American-centrism that formed the basis of the Bretton Woods system did not correspond to the three world centers united by it: Japan - Western Europe - the USA. The use of the dollar as a reserve currency for military-political and foreign economic expansion, the export of inflation and a number of other negative factors only intensified international contradictions. Initially, this resulted in the development of the Eurodollar market, which initially supported the system by absorbing excess funds. But in the 70s he exacerbated the crisis. Transnational corporations also played a role. These entities hold short-term assets that are more than double the reserves of central banks. Moreover, they can easily escape national control. Therefore, when participating in currency speculation, they can give it a grand scale.

In addition, the devaluation of the pound sterling in November 1967 also contributed to the fall of the system. And this currency, as we remember, was second after the dollar. And one day, November 18, gold security was reduced by 14.3%. Following Britain, another 25 countries (usually its trading partners) devalued their currencies in varying proportions. This launched a process that remains in history under the name “Collapse of the Golden Bloc.” After the devaluation began, the volume of transactions in the gold market increased. If in London they usually traded 5-6 tons per day, then on November 22-23 these figures reached 65-200 thousand kilograms! At the same time, the price of gold increased to $41 per troy ounce. And this despite the fact that officially it was at $35. The gold rush led to the fact that in March 1968 the gold was broken up and formed double market.

Conclusion

So the essence of the Bretton Woods monetary system was examined. This agreement played its role and lost its meaning. The Bretton Woods exchange rate system was the last link before the formation of our modern financial situation. Despite many voices about fragility and calls to go back, for now it still exists and works without significant disruption.

FEDERAL AGENCY FOR EDUCATION

STATE EDUCATIONAL INSTITUTION OF HIGHER PROFESSIONAL EDUCATION

"ST. PETERSBURG STATE UNIVERSITY

ECONOMICS AND FINANCE"

DEPARTMENT OF MONEY AND SECURITIES

Test

by discipline:

« WORLD MONETARY SYSTEM »

On topic number 2:

"Bretton Woods Monetary System"

Completed by: student

Chernetsova V.S.

group no. 442

4 courses, 4 years of study.

Faculty of Finance and Credit

Form of study: correspondence

Record book number 078045

Checked: __________________

Grade:_________________

Date of:____________________

Signature__________________

Saint Petersburg

2011

Maintaining…………………………………………………………………………………...…..3

1. Prerequisites for the creation of the Bretton Woods monetary system………….4

2. Basic principles of the functioning of the Bretton Woods monetary system………………………………………………………………………………….…….5

3. Contradictions of the Bretton Woods monetary system…………………...10

4. Reasons for the collapse of the Bretton Woods monetary system………………….13

Conclusion…………………………………………………………….………22

List of references……………………………..………….21

Introduction

Bretton Woods system - international system organization of monetary relations and trade settlements, established as a result of the Bretton Woods Conference (from July 1 to July 22, 1944) Named on behalf of the Bretton Woods resort in New Hampshire, USA. The conference gave birth to organizations such as the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF). The US dollar has become one of the types of world money, along with gold. This was a transitional stage from the gold exchange standard to the Jamaican system, which established a balance between the supply and demand of currencies through free trade in them.

It was necessary to create an international monetary system that would meet the current economic and political situation. The post-war monetary system was formalized legally at the UN Bretton Woods Conference in 1944 in the form of a charter for the International Monetary Fund.

During the United Nations Conference on Monetary and financial matters in July 1944 in Bretton Woods (New Hampshire), there was an obvious shift towards establishing cooperation between states in the monetary sphere, which was practically absent in the interwar period.

1. Prerequisites for the creation of the Bretton Woods monetary system.

The Second World War led to a deepening crisis of the Genoese monetary system. The development of a project for a new world monetary system began during the war years (in April 1943), as countries feared shocks similar to the currency crisis after the First World War and in the 30s.

Anglo-American experts who had been working on the project since 1941 rejected the idea of ​​returning to the gold standard from the very beginning. They sought to develop the principles of a new world monetary system capable of ensuring economic growth and limiting Negative consequences economic crises. The US desire to consolidate the dominant position of the dollar in the world monetary system was reflected in the plan of G. D. White (Chief of the Currency Research Department of the US Treasury Department).

As a result of long discussions on the plans of Mr. D. White and J. M. Keynes (Great Britain) were defeated by the American project, although Keynesian ideas of interstate currency regulation were also used as the basis for the Bretton Woods system.

Both currency projects are characterized by common principles:

· free trade and capital movement;

· balanced balances of payments, stable exchange rates and the global monetary system as a whole;

· gold exchange standard;

· Creation international organization to monitor the functioning of the world monetary system, to cooperate and

· covering the balance of payments deficit.

2.Basic principles of the functioning of the Bretton Woods monetary system.

At the UN Monetary and Financial Conference in Bretton Woods (USA) in 1944, the third world monetary system was formalized. The Articles of Agreement (IMF Charter) adopted at the conference defined the following principles of the Bretton Woods monetary system.

1. A gold exchange standard was introduced, based on gold and two reserve currencies - the CICA dollar and the pound sterling.

2. The Bretton Woods agreement provided for three forms of using gold as the basis of the world monetary system:

a) gold parities of currencies were preserved and their fixation was introduced in the IMF;

b) gold continued to be used as an international means of payment and reserve;

c) in order to secure the dollar’s ​​status as the main reserve currency, the US Treasury continued to exchange it for gold to foreign central banks and government agencies at the official price established in 1934, based on the gold content of its currency ($35 per 1 troy ounce, equal to 31.1035 g).

The introduction of mutual convertibility of currencies was envisaged. Currency restrictions were subject to gradual abolition, and their introduction required the consent of the IMF.

3. A regime of fixed currency parities and rates was established: exchange rates could deviate from parity within narrow limits (±1% according to the IMF Charter and ±0.75% according to the European Monetary Agreement). To maintain limits on exchange rate fluctuations, central banks were required to conduct foreign exchange intervention in dollars. Devaluation of more than 10% was allowed only with the permission of the Fund.

4. For the first time in history, an international currency regulation body was created. The IMF provides loans in foreign currency to cover balance of payments deficits in order to support unstable currencies, monitors compliance by member countries with the principles of the global monetary system, and ensures foreign exchange cooperation between countries.

The International Monetary Fund (IMF) is a specialized agency of the UN, headquartered in Washington, USA.

Under US pressure, the dollar standard was established within the framework of the Bretton Woods system - a world monetary system based on the dominance of the dollar. The dollar, the only currency partially convertible into gold, became the basis of currency parities, the predominant means of international payments, the currency of intervention and reserve assets. Thus, the United States established a monopoly currency hegemony, pushing aside its long-time competitor, Great Britain. The pound sterling, although due to historical tradition it was also assigned the role of a reserve currency, became extremely unstable. The United States used the dollar's status as a reserve currency to cover its balance of payments deficit with the national currency.

The United States entrusted its partners with the responsibility of maintaining fixed rates of their currencies against the dollar through foreign exchange intervention. The specificity of the dollar standard within the Bretton Woods system was to preserve the connection between the dollar and gold.

The dominance of the United States in the Bretton Woods system was due to the new balance of power in the world economy. In 1949, the United States concentrated 54.6% of capitalist industrial production, 33% of exports, and almost 75% of gold reserves. The share of Western European countries in industrial production fell from 38.3% in 1937 to 31% in 1948, and in the export of goods - from 34.5 to 28%. The gold reserves of these countries fell from $9 billion to $4 billion, which was 6 times less than that of the United States ($24.6 billion), and their size fluctuated sharply across countries. Great Britain, serving 40% of international trade with its currency, had 4% of the world's gold reserves. Only on the basis of the foreign economic expansion of Germany did the growth of its gold and foreign exchange reserves begin (from $28 million in 1951 to $2.6 billion in 1958).

The economic superiority of the United States and the weakness of its competitors determined the dominant position of the dollar, which was in universal demand. The basis of dollar hegemony was also the “dollar famine” - an acute shortage of dollars caused by the balance of payments deficit, especially in settlements with the United States, and the lack of gold and foreign exchange reserves. It reflected in a concentrated form the difficult monetary and economic situation of the countries of Western Europe and Japan.

The balance of payments deficit, the depletion of official gold and foreign exchange reserves, and the “dollar famine” led to increased currency restrictions in most countries, except the USA, Canada, and Switzerland. Currency convertibility was limited. The import and export of currency without the permission of currency control authorities was prohibited. The official exchange rate was artificial. Many countries in Latin America and Western Europe practiced multiple exchange rates - differentiation of exchange rates between currencies by type of transaction, product group and region.

Due to the instability of the economy, the crisis of the balance of payments, and increased inflation, the exchange rates of Western European currencies against the dollar decreased: the Italian lira by 33 times, the French franc by 20 times, the Finnish mark by 7 times, the Austrian schilling by 5 times, the Turkish lira by 2 times, pound sterling by 80% for 1938 -1958. “Exchange rate distortions” arose - a discrepancy between market and official rates, which was the cause of numerous devaluations. Among them, a special place is occupied by the massive devaluation of currencies in 1949, which had a number of features.

1. This decline in exchange rates was a manifestation of a local currency crisis that arose under the influence of the global economic crisis, which in 1948 - 1949. struck mainly the USA and Canada and had a painful impact on the economies of Western Europe.

2. The devaluation of 1949 was carried out to a certain extent under pressure from the United States, which used the appreciation of the dollar to encourage the export of capital and the purchase of cheap goods and enterprises in Western European countries and their colonies. With the revaluation of the dollar, the dollar debt of Western European countries increased, which increased their dependence on the United States. The rise in the dollar exchange rate did not affect the exports of the United States, which occupied a monopoly position in world markets at that time.

3. The exchange rate of national currencies was reduced directly against the dollar, since, in accordance with the Bretton Woods agreement, fixed rates to the American currency were established, and some currencies did not have gold parities.

4. The devaluation was carried out under conditions of currency restrictions.

5. The devaluation was widespread; it covered the currencies of 37 countries, which accounted for 60-70% of world trade. These include Great Britain, the countries of the British Commonwealth, France, Italy, Belgium, the Netherlands, Sweden, West Germany, and Japan. Only the United States retained the gold content of the dollar, established during the devaluation in 1934, although its purchasing power was halved compared to the pre-war period.

6. The depreciation of exchange rates ranged from 12% (Belgian franc) to 30.5% (currencies of Great Britain, other sterling zone countries, the Netherlands, Switzerland, etc.).

The depreciation of currencies caused an increase in the cost of imports and an additional increase in prices. As a result of the devaluation of 1949, wholesale prices increased in September 1950 in Austria by 30%, in Great Britain and Finland by 19%, and in France by 14%. The consequence of devaluations was a decrease in the living standards of workers.

The United States used the principles of the Bretton Woods monetary system (the status of the dollar as a reserve currency, fixed parities and exchange rates, the conversion of the dollar into gold, the reduced official price of gold) to strengthen its position in the world. Western European countries and Japan were interested in undervaluing their currencies in order to encourage exports and restore their devastated economies. In this regard, the Bretton Woods system contributed to the growth of world trade and production for a quarter of a century. However, the post-war monetary system did not provide equal rights to all participants and allowed the United States to influence monetary policy European countries, Japan and other IMF members.

3. Contradictions of the Bretton Woods monetary system.

Economic, energy, and raw materials crises destabilized the Bretton Woods system in the 1960s. The change in the balance of power on the world stage has undermined its structural principles. The US economic superiority over its competitors gradually weakened. Western Europe and Japan, having strengthened their monetary and economic potential, began to squeeze their American partner. In 1984, the countries of the Common Market accounted for 36.0% of industrial production in OECD countries (USA - 34%), 33.7% of exports (USA - 12.7%). Specific gravity The US gold reserves decreased from 75% in 1949 to 23%, and the EU countries increased to 38%, foreign exchange reserves - to 53% (USA - 10.8%).

From American-centrism to polycentrism in the monetary sphere. The dollar gradually lost its monopoly position in currency relations. Brand of Germany, and from the beginning of the 21st century. The euro, Swiss franc, and Japanese yen compete with it in foreign exchange markets and are used as an international means of payment and reserve. The economic and monetary dependence of Western European countries on the United States, characteristic of the post-war years, has disappeared. A new world center has emerged in the form of the EU, competing with the USA and Japan.

From “dollar hunger” to “dollar satiety.” Since the US uses the dollar to finance balance of payments deficits, this has led to a huge increase in its short-term foreign debt in the form of dollar holdings by foreign banks. “Dollar hunger” gave way to “dollar satiety.” An excess of dollars in the form of an avalanche of “hot” money periodically fell on one country or another, causing currency shocks and a “flight” from the dollar.

Collapse of currency zones. During the Second World War and after its end, currency zones were established: sterling and dollar on the basis of the corresponding pre-war currency blocks, the zone of the French franc, Portuguese escudo, Spanish peseta, and Dutch guilder. While maintaining the main features of currency blocs, currency zones reflected new phenomena associated with the strengthening of state regulation of monetary, financial and trade relations between their participants.

Firstly, interstate agreements have acquired an important role in the design and functioning of currency zones, especially the French franc zone. For example, the Monetary Committee of the Franc Zone (a centralized governing body) has been coordinating the monetary and economic policy of this grouping since 1952. Monetary policy for the sterling area was developed and coordinated by the Treasury and the Bank of England.

Secondly, in contrast to currency blocs, the internal mechanism of currency zones was characterized by a unified monetary and financial regime, a unified system of currency restrictions, a centralized pool of gold and foreign exchange reserves that were stored in the hegemonic country, and a preferential regime for currency payments within the group. The unification of currency control of the countries participating in the currency zone gave it an official character.

Third, international economic agreements between group members were usually concluded by the country leading the zone. The mechanism of currency zones was directed against the expansion of foreign capital. As the colonial system fell into crisis and a number of countries gained political independence, centrifugal tendencies intensified, which subsequently led to the collapse of the sterling, dollar and other zones and significant changes in the monetary and financial mechanism of the French franc zone, which, in connection with the introduction of the euro, was transformed into the African franc zone (June 2001).

The basic principles of its functioning have been changed. The CFA (African Financial Community) franc is pegged to the euro at a fixed rate of 1 euro = 655.95 francs. KFA. The guarantee of convertibility of the CFA franc into the euro is provided by the EU as a whole, and not just France. In May 2002, the principle of operation of operational accounts was revised. These accounts accumulated up to 70% of the official foreign exchange reserves of the peripheral members of the zone in the French Treasury, and they ensured the convertibility of their currencies (now in euros) and international settlements. The change in the monetary and financial mechanism is aimed at strengthening the influence of the EU in this regional monetary grouping.

4. Reasons for the collapse of the Bretton Woods monetary system.

Since the late 1960s, its structural principles, established in 1944, have ceased to correspond to the conditions of production, world trade and the changed balance of forces in the world. The essence of the crisis of the Bretton Woods system lies in the contradiction between the international nature of the IEO and the assignment of reserve currency status to two national currencies subject to depreciation.

The causes of the crisis of the Bretton Woods monetary system can be represented as a chain of interdependent factors.

1. Instability and contradictions of the economy. The onset of the currency crisis in 1967 coincided with a slowdown economic growth. The global cyclical crisis gripped the Western economy in 1969-1970, 1974-1975, 1979-1983.

2. Increased inflation had a negative impact on world prices and the competitiveness of firms and encouraged speculative movements of “hot” money. Different rates of inflation in countries affected the dynamics of exchange rates, and a decrease in the purchasing power of money created conditions for “exchange rate distortions.”

3. Instability of balances of payments. The chronic deficit of the balance sheets of some countries (especially Great Britain, the USA) and the surplus of others (Germany, Japan) intensified sharp fluctuations in exchange rates, downwards and upwards, respectively.

4. The inconsistency of the principles of the Bretton Woods system with the changed balance of forces on the world stage intensified as the economic positions of the United States and Great Britain weakened, which covered the deficit of their balance of payments with national currencies, abusing their status as reserve currencies. As a result, their sustainability was undermined.

The right of holders of dollar holdings to exchange them for gold came into conflict with the ability of the United States to fulfill this obligation. Their external short-term debt increased by 8.5 times over 1949-1971, and official gold reserves decreased by 2.4 times. The consequence of the American policy of “deficits without tears” was the erosion of confidence in the dollar. The official price of gold, which served as the basis for gold and currency parities, was lowered in the interests of the United States, and began to deviate sharply from the market price. Interstate regulation turned out to be powerless. As a result, artificial gold parities lost their meaning. This contradiction was aggravated by the persistent refusal of the United States until 1971 to devalue its currency. The regime of fixed parities and exchange rates aggravated “exchange distortions.” Under the Bretton Woods Agreement, central banks were forced to intervene in exchange rates to support the dollar, even at the expense of national interests. Thus, the United States shifted the responsibility of maintaining the dollar exchange rate to other countries, which aggravated interstate contradictions.

Since the IMF Charter allowed only one-time devaluations and revaluations, in anticipation of them, the movement of “hot” money and the speculative game to reduce the exchange rate of weak currencies and to increase the exchange rate of strong currencies intensified. Interstate currency regulation through the IMF turned out to be ineffective. Its loans were insufficient to cover balance of payments deficits and support currencies.

The principle of American-centrism, on which the Bretton Woods system was based, ceased to correspond to the new balance of power with the emergence of three world centers: the USA - Western Europe - Japan. The US's use of the dollar's status as a reserve currency to expand its foreign economic and military-political expansion and export inflation has intensified interstate disagreements.

5. Activation of the Eurodollar market. Since the United States covers its balance of payments deficit with its national currency, some dollars are transferred to foreign banks, contributing to the development of the Eurodollar market. This colossal market for dollars owned by non-residents ($750 billion, or 80% of the European market, in 1981 versus $2 billion in 1960) played a dual role in the development of the crisis of the Bretton Woods system. At first he supported the position American currency, absorbing excess dollars, but in the 70s. Eurodollar transactions, accelerating the spontaneous movement of “hot” money between countries, aggravated the currency crisis.

6. The disorganizing role of TNCs in the foreign exchange sector: TNCs have gigantic assets in different currencies, which are twice the foreign exchange reserves of central banks, elude national control and participate in currency speculation, giving it a grand scale.

In addition to the general ones, there were specific reasons inherent in individual stages of the development of the crisis of the Bretton Woods system.

Forms of manifestation of the crisis of the Bretton Woods monetary system:

· “Currency rush” - the movement of “hot” money, the massive sale of unstable currencies in anticipation of their devaluation and the purchase of currencies that are candidates for revaluation.

· “gold rush” - a “flight” from unstable currencies to gold and a periodic increase in its price.

· Panic on stock exchanges and a fall in securities prices in anticipation of changes in exchange rates.

· Aggravation of the problem of international currency liquidity, especially its quality.

· Massive devaluations and revaluations of currencies.

· Active foreign exchange intervention by central banks, including collective intervention.

· Sharp fluctuations in official gold and foreign exchange reserves.

· Use of foreign loans and borrowings from the IMF to support currencies.

· Violation of the structural principles of the Bretton Woods system.

· Activation of national and interstate currency regulation.

· Strengthening two trends in international economic and monetary relations - cooperation and contradictions, which periodically develop into trade and currency wars.

The currency crisis developed in waves, hitting one country or another at different times and with different strengths. The development of this crisis can be divided into several stages.

Devaluation of the pound sterling. Due to the deterioration of the country's monetary and economic situation, on November 18, 1967, the gold content and the exchange rate of the pound sterling were reduced by 14.3%. Following the UK, 25 countries, mostly trading partners, devalued their currencies in varying proportions.

Gold rush, collapse of the gold pool, formation of a double gold market. Owners of dollars began to sell them for gold. The volume of transactions in the London gold market increased from its usual value of 5-6 tons per day to 65-200 tons (1967), and the price of gold rose to $41, compared with the official price of $35 per ounce. The gold rush led to the collapse of the gold pool in March 1968 and the formation of a dual gold market.

Devaluation of the French franc. The detonator of the currency crisis was currency speculation - a game to lower the exchange rate of the franc and increase the exchange rate of the German mark in anticipation of its revaluation. The advance of the mark on the franc was accompanied by political pressure from Bonn on Paris and the “flight” of capitalism from France, mainly to Germany, which caused a reduction in the country’s official gold and foreign exchange reserves ($6.6 billion in May 1968 to $2.6 billion in August 1969 ). Despite the currency intervention of the Bank of France, the franc fell to the lowest acceptable limit. Turbulent political events in France, the resignation of Charles de Gaulle, and the refusal of Germany to revalue the mark increased pressure on the franc. On August 8, 1969, the gold content and the franc exchange rate were reduced by 11.1% (foreign exchange rates against the franc increased by 12.5%). At the same time, the currencies of 13 African countries - members of the franc zone - were devalued.

Revaluation of the German stamp. On October 24, 1969, the mark rate was increased by 9.3% (from 4 marks to 3.66 marks per dollar). The revaluation was a concession from Germany to international financial capital: it contributed to the improvement of the balance of payments of its partners, since their currencies were practically devalued. The outflow of “hot” money from Germany replenished the foreign exchange reserves of these countries. For 20 months there was relative calm in the foreign exchange markets, but the causes of the currency crisis were not eliminated.

Dollar devaluation in December 1971 The crisis of the Bretton Woods system reached its climax in the spring and summer of 1971, when the main reserve currency was at its epicenter. The dollar crisis coincided with the depression in the United States following the economic crisis of 1969-1970. Under the influence of inflation, the purchasing power of 1971 compared to 1934. The total current account deficit in the US amounted to $71.7 billion, 194% of 1971. The country's short-term external debt increased from $7.6 billion in 1949 to 64.3 billion in 1971, exceeding by 6.3 times the official gold reserve, which decreased during this period from 24.6 billion to 10.2 billion dollars

The crisis of the American currency was expressed in the massive sale of it for gold and stable currencies, and a fall in the exchange rate. Uncontrollably roaming Eurodollars flooded the currency markets of Western Europe and Japan. The central banks of these countries were forced to buy them to maintain the exchange rates of their currencies within the limits established by the IMF. The dollar crisis caused a political form of protest by countries (especially France) against the privilege of the United States, which covered the balance of payments deficit with the national currency. France exchanged $3.5 billion for gold to the US Treasury in 1967-1969. The convertibility of the dollar into gold became a fiction in 1970. The $50 billion holdings of non-residents were countered by only $11 billion in American official gold reserves.

The United States took a number of measures to save the Bretton Woods system in the 1960s.

1. Borrowing from other countries. Dollar balances were partially transformed into direct loans. Swap agreements were concluded ($2.3 billion in 1965, $11.3 billion in 1970) between the Federal Reserve Bank of New York and a number of foreign central banks. Short-term Ruza bonds were placed in Western European countries.

2. Collective defense of the dollar. Under US pressure, the central banks of most countries refrained from exchanging their dollar reserves into gold at the US Treasury. The IMF invested part of its gold reserves in dollars, contrary to the Charter. Leading central banks created a gold pool (1962) to support the price of gold. And after the collapse, on March 17, 1968, a double gold market was introduced.

3.Doubling the capital of the IMF (up to $28 billion) and a general agreement between 10 member countries of the Fund and Switzerland on loans to the fund ($6 billion), issuing SDRs in 1970 in order to cover the balance of payments deficit.

The United States stubbornly resisted the overdue devaluation of the dollar and insisted on revaluing the currencies of its partners. In May 1971 revaluation was carried out Swiss franc and the Austrian schilling, a floating exchange rate was introduced in Germany. Netherlands. which led to an actual depreciation of the dollar by 6-8%. The hidden devaluation suited the United States, since it did not have such a detrimental effect on the prestige of the reserve currency as the official one. To break the resistance of trading rivals, the United States switched to a policy of protectionism. On August 15, 1971, emergency measures were announced to save the dollar: the exchange of dollars for gold for foreign central banks (“gold embargo”) was stopped, and an additional 10% import duty was introduced. The United States has embarked on the path of a trade and currency war. The influx of dollars into Western Europe and Japan caused a massive transition to floating exchange rates and a speculative attack on the dollar by their strengthened currencies. Western Europe began to openly oppose the privileged position of the dollar in the global monetary system.

The search for a way out of the currency crisis ended in a compromise, the Washington Agreement of the “Group of Ten” (at the Smithsonian Institution) on December 18, 1971. An agreement was reached on the following points: 1) devaluation of the dollar by 7.89% and an increase in the official price of gold by 8.57% (from $35 to $38 per ounce); 2) revaluation of a number of currencies; 3) expanding the limits of exchange rate fluctuations from +_1 to +_2.25% and establishing central rates instead of currency parities; 4) cancellation of 10% customs duty in USA. But the United States did not commit to restoring the convertibility of the dollar into gold and participating in foreign exchange intervention. The devaluation of the dollar caused a chain reaction: by the end of 1971, 96 of the 118 IMF member countries had set a new exchange rate to the dollar, and the rate of 50 currencies was increased to varying degrees. . Taking into account the varying degrees of appreciation of the currencies of other countries and their share in US foreign trade, the weighted average value of the dollar devaluation was 10-12%.

The Washington Agreement temporarily smoothed over the differences, but did not eliminate them. In the summer of 1972, a floating exchange rate for the pound sterling was introduced, which led to its devaluation by 6-8%. Great Britain was forced to compensate the owners of sterling holdings and introduce a dollar, and from April 1974, a multi-currency clause as a guarantee of maintaining their value. Were strengthened currency restrictions to curb the flight of capital abroad. The pound sterling has effectively lost its reserve currency status.

In February - March 1973, the currency crisis hit the dollar again. The impetus was the instability of the Italian lira, which led to the introduction of a dual currency market in Italy (from January 22, 1973 to March 22, 1974), following the example of Belgium and France. “The gold rush and the rise in the market price of gold once again exposed the weakness of the dollar. However, unlike 1971, the United States failed to achieve a revaluation of the currencies of Western Europe and Japan. On February 12, 1973, the dollar was devalued again by 10% and the official price of gold was increased by 11.1% (from 38 to 42.22 dollars). The massive sale of dollars led to the closure of leading foreign exchange markets (from March 2 to March 19). Transition to floating exchange rates from March 1973. Corrected “exchange rate distortions” and relieved tension in the foreign exchange markets.

The six Common Market countries have abolished the outer limits of agreed fluctuations in the exchange rates of their currencies (the “tunnel”) to the dollar and other currencies. The decoupling of the “European snake currency” from the dollar led to the emergence of a kind of currency zone led by the German mark. This indicated the formation of a Western European zone of monetary stability as opposed to unstable dollar, which accelerated the collapse of the Bretton Woods system.

Conclusion.

In conclusion, I would like to note the features and socio-economic consequences of the crisis of the Bretton Woods monetary system, since between the currency crises of 1929-4933. and 1967-1976 there are certain similarities. These structural crises of the world currency system affected all countries, became protracted and led to a violation of its principles.

However, the crisis of the Bretton Woods system has a number of features:

1. Intertwining of cyclical and non-cyclical currency crises. The crisis of the Bretton Woods monetary system was combined not only with global economic crises, but also with periodic revival and economic recovery.

2. The active role of TNCs in the development of the currency crisis. Large foreign exchange assets and the scale of Eurocurrency, especially Eurodollar, operations of TNCs gave the crisis of the Bretton Woods system enormous scope and depth.

4. The disorganizing role of the United States. Using the dollar's privileged position as a reserve currency to cover its balance of payments deficit, the United States flooded Western European countries and Japan with dollars, causing disruptions in their economies, increased inflation, and currency instability, which deepened interstate contradictions.

5. The emergence of three centers of power. The structural principles of the Bretton Woods system, established during the period of the undivided master of the United States, no longer correspond to the new balance of power in the world. The EU has created a counterweight to the hegemony of the dollar, and Japan uses the yen as an international payment - reserve remedy in the Asia-Pacific region.

6. Wave-like development of the currency crisis, as evidenced by the considered stages of its development.

7. Massive devaluations and periodic revaluations of currencies. Comparison of devaluations of the 60-70s. and 1949 allows us to identify their differences in the following indicators:

a) scale: in 1967-1973. repeated devaluations affected hundreds of currencies (compared to 37 in 1949), including reserve currencies: the pound sterling and double the dollar;

b) size: in the 60-70s. the size of devaluations (on average 8-15%) was significantly less than in 1949 (up to 30.5%) and after the First World War (up to 80%). The predominance of small devaluations without a margin of safety is due to countries' fear of causing a chain reaction due to increased internationalization and globalization of economic relations;

c) duration: in the 60-70s. devaluations lasted for several years, as in the 30s, and in 1949 this event was carried out almost simultaneously in 37 countries;

d) procedure for carrying out: devaluations are carried out not only legally, but also actually on the market under conditions of floating exchange rates. And in 1949, the regime of fixed exchange rates prevailed and devaluations were carried out officially.

8.Structural nature of the crisis of the world monetary system. Its structural principles were abolished: the exchange of dollars for gold was stopped. The official gold price and gold parities were abolished, a floating exchange rate regime was introduced, and the dollar and pound sterling officially lost their status as reserve currencies.

9. The influence of state and interstate currency regulation. On the one hand, it contributes to the aggravation of contradictions, and on the other, to mitigating the consequences of the currency crisis and finding a way out of it through currency reform.

The currency crisis, disorganizing the economy, making it difficult foreign trade, increasing the instability of currencies, gives rise to severe socio-economic consequences. This is manifested in increased unemployment, freezing wages, rising inflation. Revaluation is accompanied by a decrease in employment in export industries, and devaluation, making imports more expensive, contributes to rising prices in the country. Currency stabilization programs ultimately come down to austerity at the expense of workers and the orientation of production for export. The centrifugal tendency, reflecting interstate disagreements, is opposed by the tendency towards currency cooperation.

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P.67-International monetary, credit and financial relations. Textbook. Edited by L.N. Krasavina. 3rd ed., revised. T augmented. 2005, 485 pages

Material from Wikipedia - the free encyclopedia. http://ru.wikipedia.org

P.70-International monetary, credit and financial relations. Textbook. Edited by L.N. Krasavina. 3rd ed., revised. T augmented. 2005, 485 pages

Page 78-International monetary, credit and financial relations. Textbook. Edited by L.N. Krasavina. 3rd ed., revised. T augmented. 2005, 485 pages

BRETTON WOODS SYSTEM. An international monetary system created after World War II, in which member countries of the system “pegged” the rates of their national currencies to the US dollar. The United States exchanged dollars for gold at a fixed price ($35 per 1 ounce of gold), which ensured that the value of each country’s currency was “pegged” to gold.

While World War II was completing the destruction of the international monetary system, during the July 1944 United Nations Conference on Monetary and Financial Affairs in Bretton Woods, New Hampshire, there was a clear shift toward cooperation among nations in the monetary field. , which was practically absent during the interwar period. Although the Bretton Woods system is traditionally believed to have existed from 1944 to 1971, it actually operated successfully only between 1959 and 1968. From 1946 to January 1959, exchange rates were supported by stabilization loans, the European Recovery Program and regional payments and other agreements such as the European Payments Union. It was not until 1959, when Western European currencies became freely convertible, that the Bretton Woods system began to function fully, and it was in the 1960s that it effectively collapsed. Since 1968, the entire system of “adjustable peg” (a flexible system of fixing the exchange rate that allows periodic changes in the base) hung by a thread and ceased to exist in 1971.

The discussions during which the provisions of the Bretton Woods Agreement were developed in July 1944 were conducted primarily between the Americans and the British, but in the final version of the agreement, the considerations expressed by the Americans were reflected much more fully than the proposals of the British. Although Keynes's plan for a monetary union was rejected, the establishment of the International Monetary Fund was negotiated at Bretton Woods. Its charter contained three main elements.

First, each IMF member had to establish exchange rate parity ( official rate national currency to gold or reserve currency) and not allow the exchange rate to deviate from the parity rate by more than 1% in one direction or another. Although all currencies were formally recognized as equal in the charter, Article IV placed gold or the US dollar at the center of the entire system (the fixed price of gold at that time was $35 per 1 ounce). Since the United States was the only country that expressed the value of its national currency in gold, all other countries had to fix the parities of their national currencies in US dollars and not allow their rates to deviate more than 1% from the parity. In the event of a “fundamental imbalance” in the balance of payments of any country, the exchange parity could be changed only after consultation with other members of the organization (Article IV, Section 5). The concept of a “fundamental imbalance” was never clearly defined and was later repeatedly the subject of debate among IMF member countries. The clause on the circumstances giving the right to release from the contractual obligation differed from that which existed during the era of the gold standard, since in the new conditions states could no longer expect to return to the original currency parity over time.

Secondly, in accordance with Article VIII, it was assumed that IMF member countries would introduce free convertibility of national currencies for current account transactions, and to achieve this task, Article XIV provided for a three-year transition period. The establishment of national capital controls was not prohibited (Article VI, Section 3), but member states were required to refrain from discriminatory exchange rate measures and multiple exchange rates.

Finally, the IMF received the right to provide financial support to countries experiencing short-term or medium-term balance of payments problems and to impose sanctions against countries with large balance of payments surpluses. The rights of IMF members to borrow from the Fund, as well as the size of their contributions and the number of votes during voting, were established on the basis of quotas assigned to them. Each country's quota was determined based on its share of total world income, world trade volume and international reserves. The quota was to be paid in gold or US dollars (25%) and the national currency of the country (75%). Countries were allowed to borrow freely within their quotas, but any additional borrowing was subject to a number of strict conditions. The initial fund of funds of the IMF was set at $8.8 billion and, by decision taken by a majority vote, could be increased every five years. For countries that had large balance of payments surpluses, the IMF had the right to resort to the scarcity clause (Article VII). When this clause came into force, IMF member countries were required to introduce exchange controls limiting imports and other current operations in relation to a country with a large balance of payments asset.

In the early years after the end of the war, bilateral trade and payment agreements became widespread around the world to trade in an environment where virtually all countries outside the dollar zone had resorted to trade and payment controls. The United States accepted payments exclusively in dollars or gold, and other countries in the dollar zone - primarily Canada and the countries of northern Latin America - also used the American dollar in almost all international transactions. As a result, all other countries that were in dire need of dollars, despite significant American assistance, had very limited opportunities to trade with the countries of the dollar zone.

Britain was able to maintain a high degree of freedom of trade and capital movements within the sterling area, but was forced to impose strict restrictions on trade with countries that refused to accept payments in non-convertible sterling.

Throughout the 1960s, the dollar gradually lost its ability to be exchanged for gold, but the treaty reserve standard system allowed for at least the appearance of a gold exchange standard to be maintained. As a result, the United States managed to evade the need to eliminate the balance of payments deficit for quite a long time by changing domestic economic policy or the dollar exchange rate. Eventually, however, when the American government, instead of raising tax rates, began to increase the money supply in circulation to pay for the costs of the Vietnam War, the United States experienced a surge in inflation. As you grow money supply Interest rates fell and domestic prices rose rapidly, making American goods less competitive abroad. Despite growing income from foreign investment, the US balance of payments surplus in terms of trade in goods and services (including income from foreign investments), transfers and pensions, reaching $7.5 billion in 1964, gave way to a deficit of approx. $800 million in 1971. In addition, the volume of capital exports from the United States all these years remained stably at the level of 1% of the gross national product; however, while high national interest rates in the late 1960s encouraged an influx of ca. 24 billion dollars of foreign capital, then in the early 1970s low rates caused a massive dump of securities and an outflow of investment abroad.

In accordance with IMF rules, the resulting excess dollars in the private foreign exchange market had to be absorbed by foreign central banks, which was required to maintain existing currency parities. However, such actions gave rise to expectations that the dollar would depreciate relative to the stronger currencies of countries that had accumulated huge dollar claims, in particular France, West Germany and Japan. These expectations were reinforced by official statements by the US government that it viewed changes in exchange rates as a measure necessary to restore balance of payments equilibrium and the competitiveness of American goods in foreign markets. The US deficit in official accounts reached unprecedented levels - $10.7 billion in 1970 and $30.5 billion in 1971, with a maximum of $49.5 billion (annualized) in the third quarter of 1971. 15 August 1971 The United States officially announced the suspension of the exchange of dollars for gold. At the same time, to strengthen its position in the upcoming negotiations, the United States introduced a temporary 10 percent surcharge on import duties. The introduction of the surcharge had two goals: to limit imports by making them more expensive and to warn governments foreign countries that unless they take dramatic steps to boost US exports, their own exports to the US will be severely limited.