Bretton Woods
The Bretton Woods system is the international monetary convention by the 1944 Bretton Woods Agreement. The Bretton Woods system was the first example an an international and negotiated order intended to establish a means of doing international monetary relations among independent states. The Bretton wood system was based on the gold standard and establish the dollar as a the international reserve-currency.
In 1971 the United States terminated convertibility of the US dollar to gold, removing the United States from the gold standard and transitioned to a pure fiat money system. This ended the Bretton Woods system.
References
- Steil, Benn. The Battle of Bretton Woods. Princeton University Press, 2013.
- Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.