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The new system had two important elements: created a liberal international trading order and on the other side an international monetary regime. After the experience of the Great Depression and trauma caused to world economy and trade by the World War Two, the Bretton Wood system envisioned a new liberal trading order.
According to this system, Governments were free to pursue their national economic interests but in a fixed monetary order, based on fixed exchange rates, to prevent the undesirable effects of free competition that witnessed during the 1930s (Gilpin, 1987: 131). A main element of the Brent Woods system was the creation of the fixed exchange rates...
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