Member States were only able to change their face value by more than 10% with the IMF agreement, depending on the IMF`s finding that its balance of payments was in “fundamental imbalance”. The formal definition of the fundamental imbalance has never been determined, which has created uncertainty in the authorities and has attempted to repeatedly devalue less than 10%. [26] Any country that has changed without authorization or in the event of a refusal has been denied access to the IMF. Since the collapse of the Bretton Woods system, IMF members have been free to choose all forms of exchange agreements they wish (except to waterproof their gold currency): let the currency float freely, attach it to another currency or basket of currencies, accept the currency of another country, participate in a monetary block or be part of a monetary union. One of the main reasons for the collapse of Bretton Woods was the inflationary monetary policy unsuitable for the key monetary country of the system. The Bretton Woods system was rules-based, the most important of which was to implement monetary and fiscal policy in line with official commitments. The United States violated this rule after 1965 (Bordo 1993). The United States launched the Marshall Plan for the economic recovery of the European Union in order to provide significant financial and economic assistance to the reconstruction of Europe, largely through subsidies rather than loans. The member countries of the Soviet bloc, for example. B Poland, were invited to receive the subsidies, but obtained a favorable agreement with the COMECON of the Soviet Union. [31] In a speech at Harvard University on June 5, 1947, U.S. Secretary of State George Marshall said the agreement had not taken steps to create international reserves.

It expected that a new gold production would suffice. In the event of a structural imbalance, it expected national solutions, such as adjusting monetary value or improving a country`s competitive position by other means. However, the IMF had few resources to promote such national solutions. The IMF should provide loan advances to countries with balance-of-payments deficits. Short-term balance-of-payments difficulties would be overcome by IMF loans, which would facilitate exchange rate stability. This flexibility meant that a Member State did not have to cause depression to bring its national income down to such a low level that its imports would eventually fall within its capabilities. This should avoid the need for countries to resort to conventional medicine, to embark on dramatic unemployment in the face of chronic balance-of-payments deficits. Before the Second World War, European nations – especially Britain – often used it.

All attempts to maintain the link failed in November 1968, and a new political agenda attempted to transform the Bretton Woods system into an enforcement mechanism to raise the golden link set either by Fiat`s policy or by a restriction on the honour of foreign accounts. The collapse of the gold reserve and the refusal of pool members to negotiate gold with private companies – March 18, 1968, the U.S. Congress reversed the request for 25% support for the dollar`s gold[37] – and the U.S. commitment to suspend gold sales to governments operating in private markets,[38] which led to the expansion of private gold markets. [38] in which the price of gold rose significantly more than the official price of the dollar. [39] [40] The gold reserves of the United States remained depleted due to the actions of certain nations, particularly France,[40] which continued to build their own gold reserves.