The Bretton Woods Agreements

1
The Bretton Woods Agreements Articles of
Agreement of the International Bank
forReconstruction and Development, July 22, 1944

• By signing the agreement, nations were submitting
  their exchange rates to international
  disciplines. This amounted to a significant
  surrender of national sovereignty to an
  international organization.
• A nation does not have to resort to deflating the
  domestic economy when faced with chronic
  deficits.
• The dollar was the numeraire of the system, i.e.,
  it was the standard to which every other currency
  was pegged. Accordingly, the U.S. did not have
  the power to set the exchange rate between the
  dollar and any other currency. Keynes described
  the Bretton Woods system as "the exact opposite
  of the gold standard."
• World Bank System

2
GLOBALIZATION

• Neo-Liberalism / Economic Liberalism
• Free Trade
• Market Economies
• Free Trade Agenda
• Non US Population
• Privatization
• Decrease Public Spending
• US Population
• Increased Consumer Saving
• Retraining

3
GLOBALIZATION

• NAFTA North American Free Trade Agreement
• GATT General Agreement on Trade and Tariffs
• FTA Fast Track Authority
• FTAA Free Trade Area of the Americas
• CAFTA Central American Free Trade Area

4
FREE v. FAIR TRADE

• Anti-Globalization Movement
• Nov 1999 Seattle Protest
• Sep 2003 Cancun Protest (WTO)
• Mexico to China
• Fair Trade Conditions
• Cohesion Funds
• ILO Standards
• Environmental Standards