The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold; and the ability of the IMF to bridge temporary imbalances of payments.Click to see full answer. Similarly one may ask, what were the main objectives of the Bretton Woods system?The Bretton Woods system lasted between 1945 -1972. Its main objectives were to design a post-war monetary system that facilitates greater stability of the exchange rateswithout using the gold standard and to promote international trade and development.Subsequently, question is, what do you mean by Bretton Woods system? Bretton Woods refers to the international monetary arrangement,agreed upon by the allied nations in 1944 in Bretton Woods, US, that created the IMF and World Bank and that set up a system of fixed exchange rates with the US dollar as the international reserve currency. Also, what is Bretton Woods system and why it is created? The Bretton Woods agreement was created in a 1944 conference of all of the World War II Allied nations. It took place in Bretton Woods, New Hampshire. Under the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar.What were the basic weaknesses of the Bretton Woods system? Monetary System after the Collapse of Bretton Woods System: Three basic weaknesses of the Bretton Woods System, identified by the Committee included liquidity, confidence and adjustment.
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