Evolution of international monetary regime from the era of Classical Gold Standard to the period of Bretton Woods System I36008 IF Soomi Lee

Question Please trace the evolution of international monetary regime from the era of Classical Gold Standard to the period of Bretton Woods System. What are the major characteristics of international monetary order during the era of Classical Gold Standards and how do they differ from those during the era of Bretton Woods System international monetary order?

Evolution of international monetary regime from the era of Classical Gold Standard to the period of Bretton Woods System Picture from Google.com Industrial Revolution from England rapidly enlarged British economy British Pound was the first currency of Gold Standard, automatically becoming key currency British give up gold standard Throughout WWII, British and French at war with the Nazis, they needed money for war materials On the other side, Soviet Union’s power was spreading 1944, U.S invites authorities of Europe and Asia in Bretton Woods

Major characteristics of international monetary order during the era of Classical Gold Standards First, it is notable economic performance Second, its operation as an automatic system with limited government involvement Third, it both fostered and was maintained by cooperation between the monetary authorities of different nations Fourth, it represented a credible commitment regime

Bretton Woods System as variants of the gold standard First, it was an arrangement mandated by an international agreement between governments Second, domestic policy autonomy was encouraged even at the expense of convertibility Third, capital movements were suppressed by controls

Q&A Video of the Great Depression, and Inflation by Milton Friedman (July 31, 1912 – November 16, 2006)