The Bretton Woods system tied world currencies to the dollar until the US ended gold convertibility in 1971

money & economicsWikipedia1944 · Bretton Woods, New Hampshire, USA

The Bretton Woods system tied world currencies to the dollar until the US ended gold convertibility in 1971

the gist

The Bretton Woods system set the rules for trade and money among 44 countries after delegates met in July 1944 at a hotel in Bretton Woods, New Hampshire, while World War II was still being fought. The United States held about two thirds of the world's gold, so the system was built on gold and the dollar. Countries guaranteed to keep their currencies convertible into dollars, and the dollar was convertible into gold for foreign governments and central banks. The arrangement created the International Monetary Fund to monitor exchange rates and lend to countries with balance of payments deficits, and the International Bank for Reconstruction and Development, now part of the World Bank Group. On 15 August 1971 the United States ended dollar convertibility to gold, and the system formally ended with the Jamaica Accords in 1976.

how it works

Each currency was pegged to the dollar, and the dollar was pegged to gold at a fixed price, so exchange rates stayed stable and trade grew. The IMF lent reserve currencies to countries running deficits so they did not have to devalue to correct them. The system worked while capital movements were tightly regulated and the US economy dominated, but growing offshore dollar markets made the fixed rates harder to hold.

so what

Bretton Woods created the institutions that still shape global finance, including the IMF and World Bank. Its collapse began the era of floating exchange rates that governs currencies today.

the bigger pattern

Critics have long argued that a system anchored to one country's currency gives that country extra room to manoeuvre, while fixed rates limit others' ability to respond to inflation. Similar debates recur whenever a reserve currency dominates international trade.

fun fact

The Soviet Union attended the Bretton Woods conference but later refused to ratify the agreements, describing the institutions as branches of Wall Street.

From Wikipedia, the free encyclopedia · text CC BY-SA 4.0

Image: Wikimedia Commons

source: Wikipedia ↗

historyWikipediaclassic1336–1565 · Karnataka, India

Hampi was once one of the world's largest cities, until its Vijayanagara capital was destroyed in 1565

the gist

Hampi is a UNESCO World Heritage Site in Karnataka, India, with more than 1,600 surviving remains spread over 4,100 hectares. It was the capital of the Vijayanagara Empire from 1336 to 1565. Travellers from Persia and Portugal described it as a prosperous, wealthy and grand city with temples, markets and farms along the Tungabhadra River. By 1500 it was estimated to be the world's second-largest city after Beijing, and probably India's richest at the time. In 1565 a coalition of Muslim sultanates defeated the Vijayanagara Empire, its capital was conquered and destroyed, and the city was left in ruins. Hampi remains a religious centre, with the active Virupaksha Temple at its heart.

how it works

The city was built around a fortified core with temples, markets and water structures along the river, supplied by an extensive network of roads and waterworks. When the empire fell, the city was not rebuilt, so its stone monuments were left standing.

so what

Hampi shows how quickly a great city can vanish after a military defeat, and how a ruined capital can remain sacred. Its ruins give historians a view of medieval South Asia that few other sites can match.

fun fact

The name Hampi comes from Pampa, an old name for the Tungabhadra River.

From Wikipedia, the free encyclopedia · text CC BY-SA 4.0

Image: Wikimedia Commons

source: Wikipedia ↗

2 min

politicsshortCNA2:01

False allegations about Singapore’s hand in Indonesia’s markets and a made-up meeting

from CNA

CNA Verify has found close to 400 posts pushing falsehoods tying Singapore to Indonesia’s stock market rout and to a secret meeting that never took place. Together, they drew nearly 12 million views, and some were circulated by accounts that appeared to be working in concert, across multiple social media platforms.

Here’s how the disinformation campaign targeting Singapore was uncovered.

on YouTube: CNA ↗