The Causes of the Collapse of the Bretton Woods System and Its Influence on International Relationship

Abstract

The Bretton Woods System was formulated by Britain and the United States and other countries before the end of World War II, and it could keep the worldwide hegemony of the United States and was closely related to the economic development and post-war pattern of each country. However, in the 1960s, the weaknesses of this system were showed through the Triffin problem. Besides, there were obvious institutional defects as for this system. All of these led to the collapse of the system under the circumstance of uneven development of capitalism. Although the system has already got out of the stage of history, it still influences the economic recovery of various countries around the world, and it is significant to enhance the international power and change the post-war pattern.