The Bretton Woods Agreement was signed in 1944, with the aim of establishing a new international monetary system after the devastation caused by World War II. The Agreement was a result of the Bretton Woods Conference, which was attended by representatives from 44 countries.
The primary goal behind the Bretton Woods Agreement was to promote global economic stability and prevent another Great Depression. The conference attendees recognized the need for an international monetary system that would regulate exchange rates and provide a framework for countries to manage their currencies.
At the time, the gold standard was the prevailing system, where currencies were pegged to the value of gold. However, the gold standard had proven to be inflexible and unstable during the Great Depression. The Bretton Woods Agreement, therefore, aimed to establish a new system that would provide greater stability and flexibility.
Under the Bretton Woods Agreement, the United States agreed to peg the value of the dollar to gold, while other countries agreed to peg their currencies to the dollar. The dollar became the world`s reserve currency, and the United States became the dominant economic power in the post-WWII era.
The Bretton Woods Agreement also created several international institutions, such as the International Monetary Fund (IMF) and the World Bank, to oversee the new monetary system. The IMF was tasked with promoting international monetary cooperation and exchange rate stability, while the World Bank was established to provide development assistance to countries in need.
Overall, the desire behind the Bretton Woods Agreement was to create a new international monetary system that would promote economic stability, prevent currency fluctuations, and facilitate international trade. The Agreement was a monumental achievement in post-WWII economic history and paved the way for the globalization of markets we see today.