The Bretton Woods Agreement Created The World Bank And The United Nations
In the event of a balance of payments imbalance, Keynes recommended that debtors and creditors change their policies. As Keynes described, countries with surplus payments should increase their imports from deficit countries, build factories in debtor countries or give them – and thus establish a trade balance.  Keynes was therefore sensitive to the problem that it would be deflationary to overburden the deficit country. Another aspect of the internationalization of the banking system has been the emergence of international banking consortia. Since 1964, several banks had formed international trade unions and, by 1971, more than three-quarters of the world`s largest banks had become shareholders in these unions. Multinational banks can and do huge international capital transfers not only for investment purposes, but also to protect and speculate against exchange rate fluctuations. The IMF`s modest credit facilities have clearly not been enough to cope with western European`s huge balance-of-payments deficits. The problem was compounded by the reaffirmation by the IMF Governing Council of the Bretton Woods Agreement that the IMF can only lend to current account deficits and not for capital and reconstruction purposes. Only the US$570 million contribution was actually available for PFI loans. Moreover, since the only market available for IBRD bonds was the conservative Wall Street banking market, the IBRD was forced to adopt a conservative credit policy that only provided loans if repayment was secured. Faced with these problems, the IMF and the IRD themselves admitted in 1947 that they could not cope with the economic problems of the international monetary system.  In July 1944, about 730 delegates from 44 countries met in Bretton Woods with the main objective of creating an effective exchange rate system, preventing competitive currency devaluations and promoting international economic growth.
The Bretton Woods agreement and system have been at the heart of these objectives. The Bretton Woods Agreement also created two important organizations: the International Monetary Fund (IMF) and the World Bank. While the Bretton Woods system was dismantled in the 1970s, the IMF and the World Bank remained strong pillars for international currency exchange. high tariffs, trade barriers and unfair economic competition, with war … If we could have a freer trade flow… free in the sense of less discrimination and obstacles… so that one country is not mortally jealous of another, and the standard of living of all countries increases and the economic discontent that engenders war, we could have a reasonable chance of lasting peace.  The absence of a high degree of economic cooperation between the leading nations …
Inevitably lead to an economic war that will be only the prelude and instigator of a large-scale military war. The Bretton Woods system was that nations could only impose the convertibility of gold on the anchor currency — the U.S. dollar. The imposition of the convertibility of gold was not necessary, but permitted. Nations could forgo converting dollars into gold and hold dollars instead. Instead of ensuring total convertibility, it offered a fixed price for sales between central banks.