The system was dissolved between 1968 and 1973. In August 1971, U.S. President Richard Nixon announced the “temporary” suspension of the dollar`s convertibility to gold. While the dollar had struggled in the parity established at Bretton Woods for most of the 1960s, this crisis marked the collapse of the system. An attempt to resurrect fixed exchange rates failed and in March 1973 the major currencies began to float against each other. But on a larger scale, the agreement brought together 44 nations from around the world, who brought them together to solve a growing global financial crisis. It has helped strengthen the global economy as a whole and maximize international trade benefits. The recent crisis shows several fine examples of the interdependence between financial and banking crises, and new theoretical models and empirical evidence support these links. Bolton and Jeanne (2011) model the interdependence between sovereign risks and the banking system in a monetary union where banks in each country diversify their portfolios by maintaining the sovereign debts of other Member States. Holding government bonds is a secure security that allows them to increase their leverage.
One member`s failure extends to the others due to the weakening of bank portfolios.o As chief economist of the U.S. Treasury in 1942/44, Harry Dexter White designed the U.S. International Liquidity Access Project, which rivaled Keynes`s plan for the British Treasury. Overall, White`s system tended to favour incentives to create price stability in the world`s economies, while Keynes wanted a system that promoted economic growth. The “collective agreement was a huge international undertaking,” which took two years before the conference to prepare for it. It consisted of numerous bilateral and multilateral meetings to find a common basis for determining the policies that would be behind the Bretton Woods system. In 1960, Robert Triffin, a Belgian-American economist, noted that holding dollars was more valuable than gold, because constant balance-of-payments deficits in the United States helped maintain the system in liquidity and stimulate economic growth. What was later heralded as Triffin`s dilemma was predicted when Triffin realized that if the U.S. failed to maintain its deficits, lose its liquidity, the system would not be able to keep up with global economic growth and thus shut down the system. But such payment deficits also meant that deficits over time would undermine confidence in the dollar due to the instability of the reserve currency.  Never before has international monetary cooperation been attempted on a sustainable institutional basis. The decision to distribute the right to vote among governments was even more revolutionary, not on a one-vote basis, but in relation to quotas.
As the United States has contributed the most, American leaders have been the key. Under the weighted voting system, the United States exerted a preponderant influence over the IMF. From the outset, the United States maintained one-third of the IMF`s quotas, alone enough to veto any changes to the IMF charter. For a long time, canonical opinion was that Keynesian demand management policies and Keynesian-inspired institutions (the Bretton Woods system) were primarily responsible for the unique success of most countries in terms of employment and growth in the 1950s and 1960s.