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.  The Bretton Woods Agreement is one of those turning points in the development of modern financial systems, which established the dollar as the standard currency for world trade after World War II. While the Bretton Woods system was demanting during the Nixon administration, the financial institutions created by the Agreement – the International Monetary Fund and the World Bank – remain part of the finances of the 21st century. 730 delegates from the 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, USA, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. Delegates deliberated from July 1 to 22, 1944 and signed the Bretton Woods Agreement on the last day. Through the establishment of a system of rules, institutions and procedures for regulating the international monetary system, these agreements created the IMF and the International Bank for Reconstruction and Development (IBRD), now part of the World Bank Group. The United States, which controlled two-thirds of the world`s gold, insisted that the Bretton Woods system was based on both gold and the U.S. dollar. Soviet representatives attended the conference, but then refused to ratify the final agreements and claimed that the institutions they had created were “branches of Wall Street.”  These organizations were commissioned in 1945 after the agreement was ratified by a sufficient number of countries.
What Do You Mean By Bretton Woods Agreement