Abstract
Since the end of the Bretton Woods system, the international monetary order has been marked by multipolarity. The Bretton Woods system was set up in 1944 after the Second World War as an international system of fixed yet adjustable exchange rates, including the foundation of the International Monetary Fund (IMF) as its supervisory body.1 At the core of the Bretton Woods system stood the US dollar, with the Federal Reserve Bank of the United States (US Fed) ensuring full gold convertibility of the US dollar. The remaining currencies were pegged at par to the US dollar. At the beginning of the 1970s, however, the US current account went into deficit, and market expectations of a US dollar devaluation caused huge capital outflows in the USA. Among other effects, the government of the USA decided to abandon gold convertibility. Even a broadening of the exchange rate bands could not rescue the system. By 1973, the remaining European economies had also suspended the US dollar peg.
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