1944: Farewell to Bretton Woods

During the summer of 1944, representatives from forty-four nations gathered at a resort hotel in Bretton Woods, New Hampshire, to hash out the global finances for the remaining half of the twentieth century. Cast against the backdrop of World War II, the three-week conference was a striking display of the United States' swelling political and fiscal might. For one, the U.S. used Bretton Woods as a stage to promote the dollar as the standard currency for international transactions. Though some European leaders initially blanched at the idea, American officials stood their ground and the dollar eventually won the day. But, the United States' victories at Bretton Woods didn't end there: by the time the conference closed on July 22, the delegates had voted to create both the World Bank and International Monetary Fund (IMF), institutions which, in the minds of some historians, sealed America's role as the leader of the post-war economic order. Though U.S. leaders positioned the World Bank and IMF as "financial institutions" shorn of political entanglements, both bodies bore the traces of American influence. The brainchild of American officials, the IMF was charged with stabilizing exchange rates and enforcing the dollar-centric currency standard. Likewise, the World Bank, which was devised to dole out international loans, received good chunks of its fiscal resources from the United States. -Source: www.history.com