Hi, I need help with essay on The Bretton Woods System. Paper must be at least 1500 words. Please, no plagiarized work!
The Great Depression of 1930 represents the biggest economic calamity the world has ever experienced. Although its epicentre was in Europe and North America, its crippling economic effects were felt all over the world, especially in industralised countries. This massive economic downturn was caused by countries putting up trade barriers and indulging in proliferation of foreign exchange controls to undermine the international payments system. Some countries devalued their currencies to rectify their balance of payments deficits and make their national exports more attractive in the world market. Other countries that used the same currency formed blocs, and placed unreasonable restrictions on foreign investment chances and the international flow of capital. These crude and unethical tactics led to steep falls in national income, mass unemployment, and an overall decrease in international trade. The sudden lack of demand meant that construction projects, mining and logging operations ground to a halt, agricultural produce prices plummeted by more than 50% and social ills like unemployment and homelessness hit unprecedented peaks. The Bretton Woods Agreement’s primary target was to ensure that a disaster of such magnitude as the Great Depression would never be repeated.