A new Bretton Woods is needed to save the world economy

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“We must reunite the world economy” statement came from Kristalina Georgieva, the head of the International Monetary Fund IMF. Georgieva said that this requires a new Bretton Woods agreement.

As it is known, an International Monetary Agreement was signed in Bretton Woods, a town in the USA, in 1944 in order to improve the world economy that was destroyed during the Second World War and to ensure the resumption of international trade. According to this agreement, the fixed exchange rate basis was adopted for the currencies of 44 countries other than the Eastern Bloc countries of that period, and it was accepted that the value of the currency of each country participating in the agreement was determined on the basis of dollars. Since the US dollar was indexed to gold at that time, the countries that signed the agreement had the chance to convert their money into gold.

Kristalina Georgieva, the head of the IMF, emphasized the necessity of the system with a new agreement like Bretton Woods to improve the economy and said:

“We are faced with two big tasks again. Fighting today’s crisis and building a much better tomorrow. We must invest in people again. We are in a very difficult climb, but this is an upswing… We must implement correct economic policies. Tough and strong macroeconomic policies are vital for the reduction of unemployment and an improved standard of living… For this, we must start investing in people again. This pandemic has shown us once again the importance of human health, health and climate change. We cannot ignore them. ”

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IMF: Coronavirus caused an unprecedented economic crisis

Georgieva also stated that climate-related disasters have reached $ 1.3 trillion in the last 10 years.

How will it affect the bitcoin price?

The biggest crypto currency Bitcoin, on the other hand, is known to stand against inflation and crisis. BTC, which fell in correlation with many stocks during the March crash, then recovered with the same correlation.

The IMF states that the current crisis is worse than in 2008. The crisis policies of the states show that a break in the bitcoin price will be inevitable.

Gold gone, deal is over

As it is known, US President Nixon cut his bond with the dollar and gold in 1971. With the effect of the Vietnam War that started in 1973, when the US suddenly increased its dollar supply, other countries withdrew from the agreement.


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