The evolution of Bretton Woods system and its role in the international monetary system 
Yang Shuhan

Guildhouse School，43-45 Bloomsbury Square London，WC1A 2RA;

Abstract: The Bretton Woods System, as the first global international monetary system formed after World War II, was centered on the "dual peg" mechanism where the US dollar was pegged to gold and other currencies were pegged to the US dollar. It established an institutionalized framework for international financial cooperation through the International Monetary Fund (IMF) and the World Bank. This paper systematically reviews the complete evolution of the Bretton Woods System, from its conception and preparation, formal establishment, stable operation, to the eruption of contradictions and its eventual collapse. It deeply analyzes its inherent institutional flaws and external shock factors, focusing on the system's historical role and profound impact on the contemporary international monetary system in areas such as the construction of exchange rate mechanisms, the shaping of the reserve currency landscape, the development of international financial institutions, and global balance of payments adjustments. The paper reveals the internal logic and practical implications for the development of the international monetary system.

Keywords: Bretton Woods System; International Monetary System; Dual Peg Mechanism

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