4 thoughts on “The cause of the formation and crash of the Bretton Forest system”
Eduardo
There are many reasons for the collapse of the Bretton forest system. The direct reason is the US dollar crisis. The root cause is that the system cannot reflect the imbalance of national economic development between Western industrial countries and the inherent defects of the system itself. The main causes of the collapse of the Bretton Forest system 1. The US dollar enjoys a special status that has caused an important impact on the economy of the US monetary policy on the economies of various countries. Because the US dollar is the main reserve assets and enjoys the "paper gold", the United States can use the US dollar to invest directly, buy foreign companies, or use the US dollar to make up for the international revenue and expenditure deficit. The every move of the US monetary and financial authorities will affect the entire world financial field, which will lead to the instability of the world financial system. 2. The currency of one country is the main reserve asset. It will inevitably bring contradictions that are difficult to overcome to the international reserve. The special status of the US dollar has two dilemmas: either the US international income and expenditure surplus and the US dollar currency stable. In this way, the supply of US dollars cannot be guaranteed; either the US international revenue and expenditure deficit expands and the US dollar supply increases, but this will reduce the credit status and currency value of the US dollar and the crisis of the US dollar. This is a contradiction that cannot be overcome. 3, the contradiction between the limitedness of gold and the unlimited growth of international settlement. The contradictions are intertwined with the operation process of the Bretton Forest system, so that the system lurks hidden dangers from the beginning. Due to the restrictions of minerals, mining, and smelting technology, the increase in gold supply is quite limited and slow. It is far behind the growth of the world economy, and serious imbalances occur between supply and demand. 4, the lack of elasticity of the exchange rate mechanism has led to the failure of the international revenue and expenditure adjustment mechanism. The Bretton forest currency system excessively emphasizes the stability of the exchange rate. The fixed exchange rate system makes it difficult for each leisure to use the method of adjusting the exchange rate to adjust the international revenue and expenditure, and can only negatively implement foreign exchange control or abandon the policy goal of stabilizing the domestic economy. The former must hinder the development of trade, while the latter violates the principles of stability and the development of the country's economy. Both of them are not desirable. It can be seen that the lack of flexible exchange rate mechanism is not conducive to the stable development of the economy of various countries. Therefore, for the benefit of each country, the inherent motivation of the fixed exchange rate system under the Bretton Forest system for its own interests. Pucting information: The Bretton Woods System refers to the international monetary system centered on the US dollar after World War II. In July 1944, the representatives of major Western countries established the system at the UN International Monetary Financial Conference. Because the meeting was held in the Bretton Forest of Bretton, the United States, it was called the "Bretton Forest System". Essence The general tariff agreement is supplemented by the Bretton Forest Conference in 1944. The various agreements passed by the Bretton Forest Conference are collectively referred to as the "Bretton Forest System", which is based on foreign exchange liberalization, capital liberalization and trade liberalization. The multilateral economic system constitutes the core content of the capitalist group. The establishment of the Bretton Forest system has promoted the recovery and development of the post -war capitalist world economy. Due to the frequent outbreak of the US dollar crisis and the US economic crisis, and the contradictory of the system itself, the system was announced by the Nixon administration in 1971. Reference materials: Baidu Encyclopedia-Bretton Forest System
The essence of the Bretton Forest system is to establish an international monetary system centered on the US dollar. The basic content is the US dollar linked to gold, and the currency of other countries is linked to the US dollar, and a fixed exchange rate system is implemented.
(1) The currency ratio of various countries.
The principles and adjustments of the exchange rate. The main regulations are as follows:
1. The dollar is linked to gold. That is, countries confirmed that the gold official price of $ 35 per ounce in the United States in January 1934, the gold content of each dollar was 0.888671 grams of gold. Governments or central banks can use US dollars to exchange gold to the United States at an official price. In this way, the US dollar is equivalent to gold, while currencies in other countries cannot be exchanged for gold. In order to make the official price of gold from being impacted by the price of the free market, governments need to cooperate with the US government to maintain this golden official price in the international financial market.
2. Currency is linked to other countries. Governments of other countries stipulate the gold content of their respective currencies, and determine the exchange rate of the US dollar through the proportion of gold content. Member states can also do not specify the gold content of currency, but only stipulate the exchange rate of the US dollar. For example, in 1946, the gold content of the pound of L! The US dollar, this is the legal exchange rate.
3. Perform adjustable fixed exchange rates. The International Monetary Fund Agreement stipulates that the exchange rate of currencies to the US dollar can generally only fluctuate within 1 % of the statutory exchange rate. If the market exchange rate exceeds 1 % of the statutory exchange rate, governments of various countries have the obligation to pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -market exchange rates. The exchange rate system of the Bretton Forest System is called "adjustable nailing rate system". If the legal exchange rate of member states is more than 10 %, it must be approved by the International Monetary Fund. In December 1971, the transformation of this periodic exchange rate was expanded to a scope of 2.25 % up and down, and the standard of "parity" was determined from gold to a special withdrawal right.
The collapse of the Bretton Forest system
(1) The cause of the collapse of the Bretton forest system
1. The system's own defects. The root cause of the collapse of the international currency system centered on the US dollar. This system itself has an unsolvable contradiction. Under this system, the US dollar is used as international payment methods and international reserves to play the functions of world currency.
On the one hand, the US dollar, as an international payment method and international reserves, requires the stable dollar value of the US dollar to be widely accepted by other countries in international payment. The stable value of the US dollar currency not only requires the United States to have sufficient gold reserves, but also requires the US's international income and expenditure to maintain a surplus, so that gold continues to flow into the United States and increase its gold reserves. Otherwise, people are unwilling to accept the US dollar in international payment.
On the other hand, the world must obtain sufficient foreign exchange reserves and requires the United States to maintain a large number of deficits in the United States. Essence However, with the increase of the US deficit, the gold assurance of the US dollar will continue to decrease, and the US dollar will continue to depreciate. After the shortage of the US dollar to the flood of the US dollar after the Second World War, it is an inevitable result of this contradiction development.
2. The US dollar crisis and the US economic crisis frequently broke out. The capitalist world economy has disappeared, and the US dollar crisis is the direct cause of the collapse of the Bretton forest system.
(1) US gold reserves decreased. The United States launched the Korean War in 1950, the overseas military expenditure increased, and the international revenue and expenditure deficit, and the gold reserves were flowing. In 1960, the cricket reserve in the United States fell to US $ 17.8 billion, which was not enough to replace the US $ 21.03 billion at that time, and the first crisis of the dollar appeared. In the mid -1960s, the United States was involved in the Vietnam War, the international revenue and expenditure further deteriorated, and the gold reserves continued to decrease. In March 1968, the US gold reserves fell to $ 12.1 billion, while the short -term liabilities of the same period were US $ 33.1 billion, which caused a second crisis of US dollar. By 1971, the US gold reserves ($ 10.21 billion) were only 15.05 % of its external liabilities ($ 67.8 billion). At this time, the United States has completely lost its ability to carry out gold in the US dollar. As a result, President Nixon had to announce the suspension of the US dollar exchange of gold on August 15, 1971. In 1973, the most serious economic crisis broke out in the United States, and the gold reserves fell from US $ 24.56 billion in the early days of the war to $ 11 billion. ’Without sufficient gold reserves as the basis, it has severely shaken the reputation of the US dollar.
(2) Inflation is intensified. The United States launched the Vietnam War, and the fiscal deficit was huge, and it had to rely on issuing currency to make up, causing inflation. Coupled with the two oil crisis, oil price increases and increase expenditure; at the same time, due to unemployment subsidies increase. The decline in labor productivity has led to a sharp increase in government spending. The US Consumption Price Index was 1.6 % in 1960, rose to 5.9 % in 1970, and rose to 11 % in 1974, which brought a huge impact on the US dollar exchange rate.
(3) Continuous deficit of international income and expenditure in the United States. At the end of the Second World War, the United States used the economic strength that expanded in the war and the opportunity to be weakened by other countries to export goods to Western Europe, Japan and the world, making the US international income and expenditure continue to have a huge surplus. Others The country's gold reserves flow into the United States. Countries generally feel "Dollar Shortage". With the growth of the economies of Western European countries and the expansion of export trade, its international revenue and expenditure has shifted from deficit to surplus, and the US dollar and gold reserves have increased. Due to the foreign expansion and aggression war, the international revenue and expenditure changed from a surplus to a deficit, and US funds flowed a lot, forming a "Dollar Gult". This has caused the US dollar exchange rate to withstand huge impact and pressure, and continuously fluctuating.
(2) The collapse of the Bretton Forest system
1. The seventh US dollar crisis broke out in July 1971. On August 15th, the Nixon government announced the implementation of "new economic policies" to stop performing the obligation of foreign governments or central banks to use US dollars to exchange gold to the United States. This means that the US dollar is decoupled from gold, and one of the two pillars that support the international currency system have collapsed.
2. Cancel the fixed exchange rate system. In March 1973, Western Europe sold the US dollar to snap up the trend of gold and Mark. On March 16, nine countries in the European co -market held a meeting in Paris and reached an agreement. Federal Germany, France and other countries implemented a "joint floating" to the US dollar, and a fixed exchange rate was implemented with each other. Britain, Italy, and Ireland have floated separately and will not participate in common floating. In addition, other major western currencies have also implemented floating exchange rates to the US dollar. At this point, another pillar that supports the international currency system after the war, that is, the fixed exchange rate system has also completely collapsed. This announced the final disintegration of the Bretton Forest system.
2. The monetary policy of the EU Central Bank's implementation of the monetary policy is very difficult to coordinate when the fiscal policy of the member states. After the implementation of the unified currency, in order to maintain the stability of the euro, the EU Central Bank implements a unified monetary policy. The power to implement the financial policy of the country, when the two have contradictions and the conflict of interest, it is difficult to achieve the coordination of the relationship between the two. Just as the Bretton forest currency system has Trifen's problem, the internal mechanism of the euro has internal contradictions that are difficult to overcome.
3. The EU expansion and the promotion of the euro will inevitably intensify the contradiction between the developing countries
The implementation of the unified currency in Europe, which is bound to further release the potential economic force of the European unified market. The improvement of foreign competitiveness is undoubtedly the difficulty of strengthening European trade protectionism, rising exclusivity, and increasing the difficulty of entered this market in open -type developed countries. This not only exacerbates competition and contradictions with developed countries, but also deepen and develop The contradictions of the country have even been resisted by developing countries.
I. The formation of the Bretton Forest system 1. Conditions: The comparison of the power between the Second World War has changed significantly. ① In the early days of the war, Western European countries generally declined. ② The British economy has been severely weakened, and the traditional capitalist world currency system centered on the pound is difficult to support. ③ U.S. economic strength expands unprecedentedly. 2. Formed: In the summer of 1944, the 44th countries held a meeting in the Breton Forest in the United States and signed several agreements to establish an international monetary system centered on the US dollar, namely the Bretton Forest system. 3. Content: The dollar is linked to gold, the currency of other countries is linked to the US dollar, and a fixed exchange rate system is implemented. 4. In essence: the capitalist world currency system centered on the dollar. 5. Impact: ① Through the Bretton Forest System and General Tariffs and Trade Agreement, the United States has controlled the wider world market. ② promoted the recovery and development of post -war capitalist world economy, and expanded economic exchanges between countries. . The collapse of the Bretton Forest system 1. Reason:
① In the 1970s, the economic development of Western Europe and Japan poured into the United States, and the US trade deficit expanded. ② gold reserves in the United States have decreased, and the actual depreciation of the US dollar has intensified. ③ the impact of the oil crisis in 1973. 2. Performance: In 1973, the United States could no longer exchange gold at a fixed price, and had to declare the depreciation of the US dollar. Capitalist countries would no longer assume the obligation to maintain the fixed exchange rate of their domestic currencies and the US dollar. Essence 3. Influence: With the collapse of the Bretton Forest system, the status of the US capitalist world economic overlord has gradually formed a situation of three -footed capitalist world beauty, Japan, and Europe.
There are many reasons for the collapse of the Bretton forest system. The direct reason is the US dollar crisis. The root cause is that the system cannot reflect the imbalance of national economic development between Western industrial countries and the inherent defects of the system itself. The main causes of the collapse of the Bretton Forest system 1. The US dollar enjoys a special status that has caused an important impact on the economy of the US monetary policy on the economies of various countries. Because the US dollar is the main reserve assets and enjoys the "paper gold", the United States can use the US dollar to invest directly, buy foreign companies, or use the US dollar to make up for the international revenue and expenditure deficit. The every move of the US monetary and financial authorities will affect the entire world financial field, which will lead to the instability of the world financial system. 2. The currency of one country is the main reserve asset. It will inevitably bring contradictions that are difficult to overcome to the international reserve. The special status of the US dollar has two dilemmas: either the US international income and expenditure surplus and the US dollar currency stable. In this way, the supply of US dollars cannot be guaranteed; either the US international revenue and expenditure deficit expands and the US dollar supply increases, but this will reduce the credit status and currency value of the US dollar and the crisis of the US dollar. This is a contradiction that cannot be overcome. The Bretton Woods System refers to the international currency system centered on the US dollar after World War II. In July 1944, the representatives of major Western countries established the system at the UN International Monetary Financial Conference. Because the meeting was held in the Bretton Forest of Bretton, the United States, it was called the "Bretton Forest System". Essence The Tariff Agreement, as a supplement to the 1944 Bretton Forest Conference, and various agreements passed by the Bretton Forest Conference, collectively referred to as the "Bretton Forest System", that is, foreign exchange liberalization, capital liberalization and trade liberalization The multilateral economic system for the main content constitutes the core content of the capitalist group. Extension information: The Bretton Forest system proposes background The 20 years between the two world wars, the international currency system is split into several competitive currency groups, and the currency of various countries competes to depreciate. Turbulent. In late World War, the US and British governments, for their own interests, conceived and designed the international monetary system after the war, proposed the "White Plan" and "Kanes Plan". The "White Plan" and "Kanes Program" are also the purpose of establishing international financial institutions, stabilizing exchange rates, expanding international trade, and promoting world economic development, but the operation methods are different. Ir's status of the capitalist world league after the United States in the world economic crisis and the Second World War, the international status of the US dollar was stable due to the strength of its international gold reserves. In April 1944, the " Experts on the establishment of the International Monetary Fund ". The key figures to establish the Bretton Forest system are Harry White, assistant minister of the former US Department of Finance. With the status of three -quarters of the world's gold reserves and strong military strength with the post -war United States, he supports the proposal to strengthen the US dollar status. Kanes, the head of the British delegation and the master of economics, the "White Plan" became the blueprint for the final resolution of the Bretton Forest Conference. Reference materials Source: Baidu Encyclopedia -Bretton Forest System
There are many reasons for the collapse of the Bretton forest system. The direct reason is the US dollar crisis. The root cause is that the system cannot reflect the imbalance of national economic development between Western industrial countries and the inherent defects of the system itself.
The main causes of the collapse of the Bretton Forest system
1. The US dollar enjoys a special status that has caused an important impact on the economy of the US monetary policy on the economies of various countries. Because the US dollar is the main reserve assets and enjoys the "paper gold", the United States can use the US dollar to invest directly, buy foreign companies, or use the US dollar to make up for the international revenue and expenditure deficit. The every move of the US monetary and financial authorities will affect the entire world financial field, which will lead to the instability of the world financial system.
2. The currency of one country is the main reserve asset. It will inevitably bring contradictions that are difficult to overcome to the international reserve. The special status of the US dollar has two dilemmas: either the US international income and expenditure surplus and the US dollar currency stable. In this way, the supply of US dollars cannot be guaranteed; either the US international revenue and expenditure deficit expands and the US dollar supply increases, but this will reduce the credit status and currency value of the US dollar and the crisis of the US dollar. This is a contradiction that cannot be overcome.
3, the contradiction between the limitedness of gold and the unlimited growth of international settlement. The contradictions are intertwined with the operation process of the Bretton Forest system, so that the system lurks hidden dangers from the beginning. Due to the restrictions of minerals, mining, and smelting technology, the increase in gold supply is quite limited and slow. It is far behind the growth of the world economy, and serious imbalances occur between supply and demand.
4, the lack of elasticity of the exchange rate mechanism has led to the failure of the international revenue and expenditure adjustment mechanism. The Bretton forest currency system excessively emphasizes the stability of the exchange rate. The fixed exchange rate system makes it difficult for each leisure to use the method of adjusting the exchange rate to adjust the international revenue and expenditure, and can only negatively implement foreign exchange control or abandon the policy goal of stabilizing the domestic economy. The former must hinder the development of trade, while the latter violates the principles of stability and the development of the country's economy. Both of them are not desirable. It can be seen that the lack of flexible exchange rate mechanism is not conducive to the stable development of the economy of various countries. Therefore, for the benefit of each country, the inherent motivation of the fixed exchange rate system under the Bretton Forest system for its own interests.
Pucting information: The Bretton Woods System refers to the international monetary system centered on the US dollar after World War II.
In July 1944, the representatives of major Western countries established the system at the UN International Monetary Financial Conference. Because the meeting was held in the Bretton Forest of Bretton, the United States, it was called the "Bretton Forest System". Essence The general tariff agreement is supplemented by the Bretton Forest Conference in 1944. The various agreements passed by the Bretton Forest Conference are collectively referred to as the "Bretton Forest System", which is based on foreign exchange liberalization, capital liberalization and trade liberalization. The multilateral economic system constitutes the core content of the capitalist group.
The establishment of the Bretton Forest system has promoted the recovery and development of the post -war capitalist world economy. Due to the frequent outbreak of the US dollar crisis and the US economic crisis, and the contradictory of the system itself, the system was announced by the Nixon administration in 1971.
Reference materials: Baidu Encyclopedia-Bretton Forest System
The content of the Bretton Forest system
The essence of the Bretton Forest system is to establish an international monetary system centered on the US dollar. The basic content is the US dollar linked to gold, and the currency of other countries is linked to the US dollar, and a fixed exchange rate system is implemented.
(1) The currency ratio of various countries.
The principles and adjustments of the exchange rate. The main regulations are as follows:
1. The dollar is linked to gold. That is, countries confirmed that the gold official price of $ 35 per ounce in the United States in January 1934, the gold content of each dollar was 0.888671 grams of gold. Governments or central banks can use US dollars to exchange gold to the United States at an official price. In this way, the US dollar is equivalent to gold, while currencies in other countries cannot be exchanged for gold. In order to make the official price of gold from being impacted by the price of the free market, governments need to cooperate with the US government to maintain this golden official price in the international financial market.
2. Currency is linked to other countries. Governments of other countries stipulate the gold content of their respective currencies, and determine the exchange rate of the US dollar through the proportion of gold content. Member states can also do not specify the gold content of currency, but only stipulate the exchange rate of the US dollar. For example, in 1946, the gold content of the pound of L! The US dollar, this is the legal exchange rate.
3. Perform adjustable fixed exchange rates. The International Monetary Fund Agreement stipulates that the exchange rate of currencies to the US dollar can generally only fluctuate within 1 % of the statutory exchange rate. If the market exchange rate exceeds 1 % of the statutory exchange rate, governments of various countries have the obligation to pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -pre -market exchange rates. The exchange rate system of the Bretton Forest System is called "adjustable nailing rate system". If the legal exchange rate of member states is more than 10 %, it must be approved by the International Monetary Fund. In December 1971, the transformation of this periodic exchange rate was expanded to a scope of 2.25 % up and down, and the standard of "parity" was determined from gold to a special withdrawal right.
The collapse of the Bretton Forest system
(1) The cause of the collapse of the Bretton forest system
1. The system's own defects. The root cause of the collapse of the international currency system centered on the US dollar. This system itself has an unsolvable contradiction. Under this system, the US dollar is used as international payment methods and international reserves to play the functions of world currency.
On the one hand, the US dollar, as an international payment method and international reserves, requires the stable dollar value of the US dollar to be widely accepted by other countries in international payment. The stable value of the US dollar currency not only requires the United States to have sufficient gold reserves, but also requires the US's international income and expenditure to maintain a surplus, so that gold continues to flow into the United States and increase its gold reserves. Otherwise, people are unwilling to accept the US dollar in international payment.
On the other hand, the world must obtain sufficient foreign exchange reserves and requires the United States to maintain a large number of deficits in the United States. Essence However, with the increase of the US deficit, the gold assurance of the US dollar will continue to decrease, and the US dollar will continue to depreciate. After the shortage of the US dollar to the flood of the US dollar after the Second World War, it is an inevitable result of this contradiction development.
2. The US dollar crisis and the US economic crisis frequently broke out. The capitalist world economy has disappeared, and the US dollar crisis is the direct cause of the collapse of the Bretton forest system.
(1) US gold reserves decreased. The United States launched the Korean War in 1950, the overseas military expenditure increased, and the international revenue and expenditure deficit, and the gold reserves were flowing. In 1960, the cricket reserve in the United States fell to US $ 17.8 billion, which was not enough to replace the US $ 21.03 billion at that time, and the first crisis of the dollar appeared. In the mid -1960s, the United States was involved in the Vietnam War, the international revenue and expenditure further deteriorated, and the gold reserves continued to decrease. In March 1968, the US gold reserves fell to $ 12.1 billion, while the short -term liabilities of the same period were US $ 33.1 billion, which caused a second crisis of US dollar. By 1971, the US gold reserves ($ 10.21 billion) were only 15.05 % of its external liabilities ($ 67.8 billion). At this time, the United States has completely lost its ability to carry out gold in the US dollar. As a result, President Nixon had to announce the suspension of the US dollar exchange of gold on August 15, 1971. In 1973, the most serious economic crisis broke out in the United States, and the gold reserves fell from US $ 24.56 billion in the early days of the war to $ 11 billion. ’Without sufficient gold reserves as the basis, it has severely shaken the reputation of the US dollar.
(2) Inflation is intensified. The United States launched the Vietnam War, and the fiscal deficit was huge, and it had to rely on issuing currency to make up, causing inflation. Coupled with the two oil crisis, oil price increases and increase expenditure; at the same time, due to unemployment subsidies increase. The decline in labor productivity has led to a sharp increase in government spending. The US Consumption Price Index was 1.6 % in 1960, rose to 5.9 % in 1970, and rose to 11 % in 1974, which brought a huge impact on the US dollar exchange rate.
(3) Continuous deficit of international income and expenditure in the United States. At the end of the Second World War, the United States used the economic strength that expanded in the war and the opportunity to be weakened by other countries to export goods to Western Europe, Japan and the world, making the US international income and expenditure continue to have a huge surplus. Others The country's gold reserves flow into the United States. Countries generally feel "Dollar Shortage". With the growth of the economies of Western European countries and the expansion of export trade, its international revenue and expenditure has shifted from deficit to surplus, and the US dollar and gold reserves have increased. Due to the foreign expansion and aggression war, the international revenue and expenditure changed from a surplus to a deficit, and US funds flowed a lot, forming a "Dollar Gult". This has caused the US dollar exchange rate to withstand huge impact and pressure, and continuously fluctuating.
(2) The collapse of the Bretton Forest system
1. The seventh US dollar crisis broke out in July 1971. On August 15th, the Nixon government announced the implementation of "new economic policies" to stop performing the obligation of foreign governments or central banks to use US dollars to exchange gold to the United States. This means that the US dollar is decoupled from gold, and one of the two pillars that support the international currency system have collapsed.
2. Cancel the fixed exchange rate system. In March 1973, Western Europe sold the US dollar to snap up the trend of gold and Mark. On March 16, nine countries in the European co -market held a meeting in Paris and reached an agreement. Federal Germany, France and other countries implemented a "joint floating" to the US dollar, and a fixed exchange rate was implemented with each other. Britain, Italy, and Ireland have floated separately and will not participate in common floating. In addition, other major western currencies have also implemented floating exchange rates to the US dollar. At this point, another pillar that supports the international currency system after the war, that is, the fixed exchange rate system has also completely collapsed. This announced the final disintegration of the Bretton Forest system.
2. The monetary policy of the EU Central Bank's implementation of the monetary policy is very difficult to coordinate when the fiscal policy of the member states. After the implementation of the unified currency, in order to maintain the stability of the euro, the EU Central Bank implements a unified monetary policy. The power to implement the financial policy of the country, when the two have contradictions and the conflict of interest, it is difficult to achieve the coordination of the relationship between the two. Just as the Bretton forest currency system has Trifen's problem, the internal mechanism of the euro has internal contradictions that are difficult to overcome.
3. The EU expansion and the promotion of the euro will inevitably intensify the contradiction between the developing countries
The implementation of the unified currency in Europe, which is bound to further release the potential economic force of the European unified market. The improvement of foreign competitiveness is undoubtedly the difficulty of strengthening European trade protectionism, rising exclusivity, and increasing the difficulty of entered this market in open -type developed countries. This not only exacerbates competition and contradictions with developed countries, but also deepen and develop The contradictions of the country have even been resisted by developing countries.
I. The formation of the Bretton Forest system
1. Conditions: The comparison of the power between the Second World War has changed significantly.
① In the early days of the war, Western European countries generally declined.
② The British economy has been severely weakened, and the traditional capitalist world currency system centered on the pound is difficult to support.
③ U.S. economic strength expands unprecedentedly.
2. Formed: In the summer of 1944, the 44th countries held a meeting in the Breton Forest in the United States and signed several agreements to establish an international monetary system centered on the US dollar, namely the Bretton Forest system.
3. Content: The dollar is linked to gold, the currency of other countries is linked to the US dollar, and a fixed exchange rate system is implemented.
4. In essence: the capitalist world currency system centered on the dollar. 5. Impact:
① Through the Bretton Forest System and General Tariffs and Trade Agreement, the United States has controlled the wider world market.
② promoted the recovery and development of post -war capitalist world economy, and expanded economic exchanges between countries.
. The collapse of the Bretton Forest system
1. Reason:
① In the 1970s, the economic development of Western Europe and Japan poured into the United States, and the US trade deficit expanded.
② gold reserves in the United States have decreased, and the actual depreciation of the US dollar has intensified.
③ the impact of the oil crisis in 1973.
2. Performance: In 1973, the United States could no longer exchange gold at a fixed price, and had to declare the depreciation of the US dollar. Capitalist countries would no longer assume the obligation to maintain the fixed exchange rate of their domestic currencies and the US dollar. Essence
3. Influence: With the collapse of the Bretton Forest system, the status of the US capitalist world economic overlord has gradually formed a situation of three -footed capitalist world beauty, Japan, and Europe.
There are many reasons for the collapse of the Bretton forest system. The direct reason is the US dollar crisis. The root cause is that the system cannot reflect the imbalance of national economic development between Western industrial countries and the inherent defects of the system itself.
The main causes of the collapse of the Bretton Forest system
1. The US dollar enjoys a special status that has caused an important impact on the economy of the US monetary policy on the economies of various countries. Because the US dollar is the main reserve assets and enjoys the "paper gold", the United States can use the US dollar to invest directly, buy foreign companies, or use the US dollar to make up for the international revenue and expenditure deficit. The every move of the US monetary and financial authorities will affect the entire world financial field, which will lead to the instability of the world financial system.
2. The currency of one country is the main reserve asset. It will inevitably bring contradictions that are difficult to overcome to the international reserve. The special status of the US dollar has two dilemmas: either the US international income and expenditure surplus and the US dollar currency stable. In this way, the supply of US dollars cannot be guaranteed; either the US international revenue and expenditure deficit expands and the US dollar supply increases, but this will reduce the credit status and currency value of the US dollar and the crisis of the US dollar. This is a contradiction that cannot be overcome.
The Bretton Woods System refers to the international currency system centered on the US dollar after World War II.
In July 1944, the representatives of major Western countries established the system at the UN International Monetary Financial Conference. Because the meeting was held in the Bretton Forest of Bretton, the United States, it was called the "Bretton Forest System". Essence
The Tariff Agreement, as a supplement to the 1944 Bretton Forest Conference, and various agreements passed by the Bretton Forest Conference, collectively referred to as the "Bretton Forest System", that is, foreign exchange liberalization, capital liberalization and trade liberalization The multilateral economic system for the main content constitutes the core content of the capitalist group.
Extension information:
The Bretton Forest system proposes background
The 20 years between the two world wars, the international currency system is split into several competitive currency groups, and the currency of various countries competes to depreciate. Turbulent.
In late World War, the US and British governments, for their own interests, conceived and designed the international monetary system after the war, proposed the "White Plan" and "Kanes Plan".
The "White Plan" and "Kanes Program" are also the purpose of establishing international financial institutions, stabilizing exchange rates, expanding international trade, and promoting world economic development, but the operation methods are different.
Ir's status of the capitalist world league after the United States in the world economic crisis and the Second World War, the international status of the US dollar was stable due to the strength of its international gold reserves. In April 1944, the " Experts on the establishment of the International Monetary Fund ".
The key figures to establish the Bretton Forest system are Harry White, assistant minister of the former US Department of Finance. With the status of three -quarters of the world's gold reserves and strong military strength with the post -war United States, he supports the proposal to strengthen the US dollar status. Kanes, the head of the British delegation and the master of economics, the "White Plan" became the blueprint for the final resolution of the Bretton Forest Conference.
Reference materials Source: Baidu Encyclopedia -Bretton Forest System