Economists and other planners understood in 1944 that the new system could only begin after a return to normality after the interruption of the Second World War. It was expected that after a short transition period, the international economy would not recover for more than five years and that the system would be operational. As chief international economist at the U.S. Treasury, Harry Dexter White designed the U.S. Cash Access Project in 1942/44, which rivaled Keynes`s plan for the British Treasury. Overall, White`s system tended to favour incentives to create price stability in the world`s economies, while Keynes wanted a system that promoted economic growth. The “collective agreement was a huge international undertaking,” which took two years before the conference to prepare for it. It consisted of numerous bilateral and multilateral meetings to find a common basis for determining the policies that would be behind the Bretton Woods system. Krugman (1999) focused on the balance sheets of companies that have borrowed abroad. A speculative attack would occur if the market expected a pejorative currency to lead to insolvency and contractual activity, which would deprive funds and put the unfavourable chain of events in the mirror. The Bretton Woods Agreements are generally considered to be from the date of 1947 (the agreement was signed on December 18, 1946) until 1971, when the Americans closed the golden window. However, this is a simplification up to distortion. The fact is that the intention was to have the convertibility of the current account from the beginning, while allowing countries to protect their capital accounts through controls, if any.
Indeed, convertibility was not achieved until the end of 1958 and it must be said that the period actually began in 1959. And the point of arrival could be revised until early 1968, as it marked the end of the gold reserve and the beginning of a two-tier system, a private one and a civil servant. It was then that the gold trade began to take place and the writing was on the wall for the Bretton Woods years. There is the creation of institutions with the IMF and the IRD, which eventually becomes the World Bank. The IMF is particularly important in the international system, as it regulates international economies from a national perspective and finances the balance of payments of vulnerable countries. As a Solidarity Fund, each Member State must provide a deposit, the amount of which depends on the projected GDP of the Member States, and when a country has difficulty balancing its balance of payments, it can resort to aid automatically, but also under certain conditions. Keynes wants much of this financial framework to deal with serious imbalances. But White and the Americans are against this idea because the United States is not ready to sign “naked cheques.” Keynes loses and white wins. If we look at the characteristics of the Breton forest system, we see a compromise that reflects the negotiations between the United States and the British. Already during the debates on the shape of the international monetary system. The United States dominates the negotiations on Breton Woods.
The monetary authorities of each country undertake to maintain their currencies on parity, as they are obliged to maintain their currency at 20% of the value of parity. Parities are adjustable under certain conditions. The chosen parity can be modified by a Member State to correct a fundamental imbalance in the value of payments.