Describe the effects of the Bretton Woods system.
There was unprecedented growth of trade and incomes for the Western industrial nations and Japan. World trade grew annually at over 8 per cent between 1950 and 1970 and incomes at nearly 5 per cent. The growth was stable and without large fluctuations. Unemployment averaged less than 5 per cent in most industrial countries. (a) There was worldwide spread of technology and enterprise. Developing countries tried to make advancement like advanced industrial countries. They invested vast amount of capital, imported industrial plants and equipment with modern technology.
