1. What were the key differences between the orders of Bretton Woods the Inter-war period & ?

2. Currency Stability in the Interwar period Floating market-based exchange rates due to instability from WW1 and Great Depression Attempts to resurrect international gold standard fail: stabilisation causes social instability (1926 General Strike in Britain) Lack of US support: 1932 Lausanne Conference Mounting hostility between nations in 30s: Britain, France, US vs. Japan, Germany and Italy = cooperation difficult Currency flexibility = discouraged trade and capital flight

3. Currency Stability in Bretton Woods Pegged, but adjustable exchange rates based on gold or US dollars – flexible gold standard Adjustment of parity only in case of fundamental disequilibrium not precisely defined State allowed to intervene in case of exchange rate fluctuations of +/- 1% World Bank as fixed pool of national currencies and gold to assure global liquidity Capital controls to avoid capital flight

4. International Financial Institutions in the Interwar period No country to take international lead to support the international economic situation League of Nations ineffectual USA is compromised as world economic power: isolationism = only intervened haltingly and irresponsibly on the international stage (Block, p.18) 1924: Dawes Plan in Germany, halted in 1929 by Wall Street Crash = instability 1925: bankrolled British currency stabilization = social discontent 1931: Only offers partial help to Germany to pay reparations and cope with effects of Depression = Fascism?

5. International Financial Institutions in Bretton Woods International Monetary Fund as global Institution with quotas based on Member States relative economic power World Bank as financial body to stabilize and facilitate pegged exchange rates Member States obliged to pay in a relative amount (25% in gold or Dollars, 75% in national currency) borrowing mechanism of subscriptions & quota Due to economic power and willingness, US leadership US as main paying Nation dominates

6. Trade in the Interwar period Depression = protectionist policies to cope with financial instability - beggar thy neighbour situation, eg. US export surplus + tariffs Bilateral trade agreements

7. Trade in Bretton Woods No discriminatory trade practices allowed Liberalisation of global trade yet defered convertibility granted to Art.XIV Countries after WWII Embedded Liberalism, welfare and global trade have to be harmonised Institutionalised Liberalism with state autonomy for domestic economic affairs Multilateral trade

8. Summary Inter-WarBW IdealBW Reality Currency Stability Floating gold- standard,market -based, no stability Fixed, but adjustable exchange rates No European Country able to fullfill par-value after WWII, EPU sidestep,un- willingness to adjust Financial Institutions No global Institution – US and League of Nations ineffectual IMF & World Bank as global financial body to oversee glob. economy US policy dominance (eg. Dollar-centered, SDR), no equal global Players Trade Protectionism, bilateral Embedded Liberalism, multilateral US wanted tedency to open markets for its businesses