Identify the most appropriate reason for holding Bretton Woods Conference:

The correct answer is To preserve economic stability and full employment in the industrial world.

Key Points

• The Bretton Woods Conference was held in July 1944 in Bretton Woods, New Hampshire, USA.
• The primary aim was to establish a new international monetary order to promote economic stability and prevent the economic conditions that led to the Great Depression.
• Delegates from 44 Allied nations attended the conference to discuss and design a framework for international economic cooperation.
• The conference led to the creation of key institutions like the International Monetary Fund (IMF) and the World Bank to facilitate economic stability and growth.

Additional Information

• International Monetary Fund (IMF)
  • The IMF was established to oversee the international monetary system and provide short-term financial assistance to countries facing balance of payments problems.
  • It helps stabilize exchange rates and provides a mechanism for international financial cooperation.
• World Bank
  • The World Bank was created to provide long-term loans and grants for development projects to boost economic development in war-torn and developing countries.
  • Its focus is on reducing poverty by providing financial and technical assistance for development projects.
• Gold Standard
  • One of the outcomes of the Bretton Woods Conference was the establishment of a system of fixed exchange rates, where currencies were pegged to the US dollar, which was convertible to gold.
  • This system aimed to provide stability in international financial transactions.
• Economic Stability Post-WWII
  • The Bretton Woods system sought to avoid the economic chaos and instability that followed World War I and contributed to the Great Depression.
  • It aimed to foster economic growth, full employment, and international trade stability.