... rate fluctuation, allow countries to follow their own domestic macroeconomic policies and prevent the catastrophic panics affecting not just individual banks but whole countries that produced the destructive international financial crisis. There was a prevailing economic view that found fixed exchange rates between countries to be desirable ( http://proquest.umi.com "Bretton Woods - original intentions and current problems" 15/5/03 Raymond F Mikesell). This essay will give an overview of the system's development between 1944 and today and stresses problems obstacles. It identifies mistakes that have been made an pointes out aspects that have to be taken into account when implementing a "new system of Bretton Woods." 2. Development of the system 2.1. The conference of Bretton Woods In 1944, an international conference took place in Bretton Woods, New Hampshire, USA. Forty-four countries attended this conference in order to restructure international finance and currency relationships. The conference has agreed on the problems needing attention, the ...

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