Influence and Conclusion

The collapse of Bretton Woods System indicates the end of fixed exchange rate, most countries use float exchange rate until now. Although the system came to an end in 1971, its contribution to the world economy is till remembered. The system help western countries pulled through the most difficult period(after Second World War) and achieve economic resurgence (Marshall Plan). Moreover, the IMF and WB still exist and play an important role on the global economy, especially, in supporting the developing countries. Moreover, as Bordo and Eichengreen(1993) point out, the significance of the Bretton Woods System lies primarily in the inspiration it gave to the later development of formal regime theory.