what is the effect of bretton …

The effects of Bretton Woods system are as follow: - (i) Bretton Woods system inaugurated an era of unprecedented growth of trade and income for the Western industrial nations and Japan. (ii) It provided a big boost to the world trade which grew annually at over 8 per cent between 1950 and 1970. and incomes at nearly 5 per cent. (iii) The growth was also mostly stable, without large fluctuations. (iv) The system also controlled the unemployment which averaged less than 5 per cent in most industrial countries. (v) These decades also saw the worldwide spread of technology and enterprise. Developing countries were in a hurry to catch up with the advanced industrial countries. Therefore, they invested vast amounts of capital, importing industrial plans and equipment featuring modern technology.