What is bretton cap?

Bretton Woods was a conference held in New Hampshire, USA in 1944. The conference was named after the location where it was held and was attended by representatives from 44 Allied countries who sought to establish a new system for international economic and financial relations in the aftermath of World War II.

The Bretton Woods agreement established a fixed exchange rate system where national currencies were pegged to the US dollar which, in turn, was backed by gold. This system created stability in global trade and enabled post-war reconstruction to take place.

However, by the 1960s, the system had come under pressure due to the increasing US trade deficit and inflation pressures which led to the devaluation of the US dollar in 1971. This created instability in global currency exchange rates and contributed to the end of the Bretton Woods system in 1973.