Which economic framework established after WWII to stabilize currencies and support international trade?

Which economic framework established after WWII to stabilize currencies and support international trade?

• A. The Bretton Woods system
• B. The Marshall Plan
• C. The General Agreement on Tariffs and Trade
• D. The Truman Doctrine

Answer: (A)

After World War II, nations sought a stable monetary order to prevent devaluations and keep trade flowing. The Bretton Woods system did exactly that by creating fixed exchange rates anchored to the U.S. dollar, with the dollar itself convertible to gold, and by establishing institutions like the International Monetary Fund and the World Bank to monitor economies, provide short-term financing, and support reconstruction and development. This framework directly addressed currency stability and international trade, making it the best answer. The Marshall Plan provided extensive economic aid for European reconstruction but did not establish a monetary framework. The General Agreement on Tariffs and Trade focused on reducing tariffs and liberalizing trade rules, not on stabilizing currencies. The Truman Doctrine dealt with political and military containment and security, not economic monetary order.

After World War II, nations sought a stable monetary order to prevent devaluations and keep trade flowing. The Bretton Woods system did exactly that by creating fixed exchange rates anchored to the U.S. dollar, with the dollar itself convertible to gold, and by establishing institutions like the International Monetary Fund and the World Bank to monitor economies, provide short-term financing, and support reconstruction and development. This framework directly addressed currency stability and international trade, making it the best answer.

The Marshall Plan provided extensive economic aid for European reconstruction but did not establish a monetary framework. The General Agreement on Tariffs and Trade focused on reducing tariffs and liberalizing trade rules, not on stabilizing currencies. The Truman Doctrine dealt with political and military containment and security, not economic monetary order.