ABSTRACT
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Following the dramatic collapse of the international economy in the 1930s, representatives of the allied nations met at Bretton Woods (New Hampshire) in 1944 to plan the future of the post-World War II international monetary system. Delegates recognized the desire for full employment and rising income levels. They also recognized the need for the postwar international financial system to combine exchange rate stability (thus avoiding competitive devaluations) and national independence in macroeconomic policy making.
