The Bretton Woods conference in 1944 created the foundations of the modern global economy

Some scholars consider the Bretton Woods system one of the best foreign policy decisions in US history

A survey of historians by the Council on Foreign Relations ranked the creation of the Bretton Woods system among the top 10 foreign policy decisions in US history, highlighting its role in establishing postwar stability, prosperity, and decades of economic growth.

The US dollar became the world's reserve currency, backed by gold, after 44 nations gathered in Bretton Woods, New Hampshire, in 1944 with the intention of rebuilding the global economy.

British economist John Maynard Keynes originally proposed a global currency called the bancor.

The Bretton Woods economic order was built on Keynesian principles

Keynesian economics suggests that governments should actively manage economies to prevent downturns, promote employment, and regulate markets. The Bretton Woods institutions were created based on this belief that coordinated public intervention could prevent the economic crises of the 1930s.

The IMF was created to prevent the currency crises that destabilized the 1930s global economy

Founded in 1945, the IMF monitors exchange rates, promotes financial stability, and provides emergency funding to countries that cannot pay for their imports. It currently has 191 member countries and acts as a lender of last resort for struggling economies.

Critics argue that the World Bank, IMF, and WTO were designed to serve Western interests

Some analysts from developing nations argue that the Bretton Woods institutions were designed to reinforce Western economic dominance rather than to promote fair development for poorer countries. Supporters respond that these institutions have improved living standards worldwide.

The World Bank funds development in the world's poorest countries

Originally called the International Bank for Reconstruction and Development, the World Bank was established in 1944 to assist in rebuilding war-damaged countries and has since grown to finance long-term economic development worldwide.

Harry Dexter White outmaneuvered Keynes to make the dollar the center of the new global monetary system

The chief US Treasury economist at the conference, White, advocated for a dollar-centered exchange rate system over Keynes' competing idea of a new global currency, shaping the postwar economic order for decades.

How Stalin, Roosevelt, and Churchill shaped the postwar world

The Yalta Conference was a pivotal 1945 meeting between Allied leaders that helped shape the postwar global order and laid the groundwork for the founding of the United Nations.

The G20 emerged from the 1997 Asian financial crisis as a forum for managing the global economy

Established in 1999 and elevated to a leaders' summit during the 2008 financial crisis, the G20 now unites the world's largest economies to address issues that the Bretton Woods institutions were not designed to manage.

The history of the World Trade Organization

This episode of the "Brettonomics with Nancy Jackson" podcast explores the history of the WTO and its predecessor, the GATT, revealing the key people, negotiations, and decisions that shaped today's international trade rules.

The failures of the interwar period made the case for a new international system

After World War I, countries devalued their currencies, raised tariffs to block imports, and seized territory unchecked, with the international community unable to organize effectively to stop them. The result was a global depression and, eventually, another world war.

Nixon's 1971 decision to untether the dollar from gold ended the Bretton Woods exchange rate system

The Bretton Woods system initially pegged all major currencies to the US dollar, which could be exchanged for gold at a fixed rate of $35 per ounce. Growing deficits and decreasing gold reserves prompted Nixon to end that guarantee in 1971, marking the end of the fixed exchange rate era.

The global economy runs on US dollars, with nearly 90% of international trade in 2019 being processed in US dollars.

The United Nations was founded in San Francisco in 1945.

The formation of the UN elevated the US on the world stage

This podcast episode of "To the Best of My Ability" from the National WWII Museum goes behind the scenes of the United Nations' founding from the American perspective. It explores how FDR's vision for global peace took shape, how Truman carried it forward, and how Eleanor Roosevelt helped define human rights—set against the backdrop of wartime diplomacy, Cold War tensions, and the San Francisco Conference, where the UN Charter was signed.

The 1941 Atlantic Charter was a World War II alliance and model for the UN

The Atlantic Charter was a pivotal 1941 agreement between Franklin D. Roosevelt and Winston Churchill, outlining shared goals for a post-World War II world rooted in freedom and self-determination. These ideals later inspired the founding principles of the United Nations.

John Maynard Keynes was one of the most influential economists of the 20th century

Keynes influenced economic thought by arguing that governments should spend to stabilize economies during downturns. His ideas shaped the postwar international order and remain central to modern economic policy debates.

Watch the historic treaty signing that established NATO in 1949

NATO was created with the signing of the North Atlantic Treaty on April 4, 1949, in Washington, DC. The clip embedded in the webpage includes a newsreel with an excerpt from US President Harry Truman’s speech celebrating the historic day.

The GATT and its successor, the WTO, were established to lower trade barriers

Signed in 1947, the General Agreement on Tariffs and Trade began systematically reducing tariffs and trade barriers among member nations. In 1995, it was replaced by the World Trade Organization, which expanded those rules and established a formal dispute settlement system.

The 1997 Asian financial crisis tested the limits of the rules-based order's financial architecture

When a currency crisis hit Thailand, Indonesia, and South Korea, the IMF allocated $118B in emergency loans. However, the attached conditions were widely criticized for worsening the economic downturn and increasing distrust of Western-led institutions across the Global South.

The General Agreement on Tariffs and Trade and its successor, the WTO, was formed to reduce trade barriers between nations.

The World Bank, IMF, and WTO all face calls for structural reform

Researchers argue that all three major institutions face legitimacy and effectiveness challenges, including outdated governance structures, unequal voting power, and difficulty adapting to a more multipolar world.

The Federal Reserve Act's foundation was laid in a secretive meeting disguised as a duck hunt at the world's most prestigious club, the exclusive Jekyll Island Club in Georgia.

During the Cold War, the rules-based order was largely limited to the West

The Soviet Union and its allies operated outside the Bretton Woods institutions, meaning the postwar liberal order functioned as a regional rather than a truly global system. This changed with the USSR's collapse in 1991.

Franklin D. Roosevelt's 1941 speech framed World War II as a global fight for universal rights

Eleven months before the attack on Pearl Harbor, President Roosevelt outlined four fundamental freedoms that, in his words, people "everywhere in the world" ought to enjoy—speech, worship, freedom from want, and freedom from fear.

How World War II affects your wallet today

The world's deadliest conflict also impacted social programs extensively, including ways that still affect your money today. World War II is responsible for the practice of employers withholding tax payments and sponsoring health insurance, as well as the norm of providing school lunches for the nation's schoolchildren. Watch this brief video to learn more.

The BRICS development bank was created as an alternative to Western-led institutions

Brazil, Russia, India, China, and South Africa founded the New Development Bank in 2015, clearly positioning it as a counterbalance to the World Bank and IMF—and a way for middle powers to influence global economic governance.

The WTO is the global body that sets and enforces the rules of international trade

Founded in 1995, with 164 member countries, the WTO negotiates trade agreements, resolves disputes between nations, and aims to reduce barriers to international commerce.

The US dollar has served as the world's reserve currency for 80 years—but is its dominance coming to an end?

Since the establishment of the Bretton Woods economic system, about 90% of global foreign exchange transactions have involved USD. Although no viable alternative exists yet, the dollar's share of central bank reserves has decreased from 73% to 58% from 2001 to 2024, and President Trump's 2025 tariffs have sped up this trend.

Explore an interactive timeline of the most important moments in the WEF’s history

This interactive traces the World Economic Forum’s evolution from a small European meeting in the 1970s into a global power hub, highlighting pivotal moments in Davos, landmark speeches, and turning points that have shaped its outsized influence on world affairs.

See a breakdown of how each country contributes to the world's $126T economy.

In the wake of the Great Depression, a Russian-American economist named Simon Kuznets popularized the formula for gross domestic product to summarize the health of the economy and provide the American government with a metric to track growth.

The Marshall Plan aimed to rebuild Europe and limit Soviet influence

Launched in 1948, the Marshall Plan provided over $12B (roughly $150B today) in US aid to help rebuild Western Europe. While framed as economic recovery, it also served as a Cold War tool—tying countries to the US and excluding the Soviet bloc.

The League of Nations was the predecessor to the UN—and the US never joined

The League of Nations—established in 1920 after World War I—was the first global organization aimed at maintaining world peace. Although US President Woodrow Wilson championed its creation, the United States never joined.

The treaty that ended the First World War laid the groundwork for the Second.

Wartime conferences exposed cracks in the US–Soviet alliance

At the Tehran, Yalta and Potsdam Conferences, Allied leaders coordinated WWII strategy—but deep disagreements over postwar Europe foreshadowed the Cold War. The USSR’s push for influence in Eastern Europe clashed with US and British calls for self-determination.

The New Deal shifted economic and social authority to the federal government

Franklin D. Roosevelt's response to the Great Depression expanded federal power through economic regulation and social welfare programs, permanently reshaping federalism by shifting responsibility for financial security to Washington while leaving states to administer many of these programs.

The Smoot-Hawley Tariff Act—which was passed during the Great Depression with the goal of reviving domestic industry—is among the most famous pieces of economic legislation in US history.

The Great Depression was an international depression felt far beyond the US

Many countries suffered through a depression in the 1930s that the First World War, the US stock market crash, and an economic downturn in Germany turned into an international crisis.

Visualize $102T of global debt, based on data from the International Monetary Fund's October 2024 outlook.

The Budget and Accounting Act of 1921 created the modern federal budget

Before 1921, federal funding was fragmented and ad hoc. This article traces how inefficiency and postwar pressures led Congress to pass the Budget and Accounting Act, creating a standardized, centralized federal budgeting process.

How failures at Versailles Conference led to more racial inequality

Suffering a pandemic and the aftermath of a war that killed 50 million, the world in 1920 faced a turning point as it negotiated a new political order. As today, the key issue was racial inequality.

The origin of the National Science Foundation and why World War II led to its founding

Before World War II, research institutions were funded by endowments or private companies whose priorities stifled the curiosity-driven science that fueled significant breakthroughs and innovation. The NSF was established in 1950 to promote independent scientific progress through basic research, which is focused on knowledge acquisition rather than commercial applications, conducted at national colleges and universities.

The Social Security System was created to protect Americans from economic disasters like the Great Depression

President Franklin Delano Roosevelt’s New Deal created new government agencies and programs in the wake of the Great Depression.

Global trade volume is roughly 45 times what it was when the General Agreement on Tariffs and Trade was founded

Since 1950, world trade values have grown nearly 410 times, mainly due to the successive tariff reductions negotiated under GATT and the WTO.

Japan's 1990s deflation followed the country's fastest growth period

The end of World War II ended Japan's isolation in the global economy, prompting what's now called the "Japanese Economic Miracle." From the 1940s to the 1980s, Japanese policy makers enacted ultra-loose monetary policies that pushed a ton of cash into the market and fueled rapid growth. But these policies ultimately helped create a bubble and sent the country into a deep period of deflation.

Hamilton built the foundations of the US financial system as the nation's first Treasury secretary

Appointed the nation's first Treasury secretary in 1789 by George Washington, Alexander Hamilton designed a powerful federal finance system—repaying war debts, creating new taxes, founding a national bank, and promoting economic development.

The world rapidly decolonized after World War II, with roughly a hundred new countries emerging between 1945 and 1989.

Decolonization isn't complete, as nearly 2 million people were living in UN-designated non-self-governing territories as of 2023.

Track how much the US government has spent on bailouts.