The Economics of Foreign Exchange: Bretton Woods

The video explains the Bretton Woods Conference's establishment of a fixed exchange rate system, its eventual collapse, and the transition to floating currencies. It highlights the key players in the foreign exchange market, including companies, investment firms, and governments, and discusses the management of foreign exchange risk through derivatives. The video also touches on government influence on currency values, particularly focusing on China's strategies.

What was the main outcome of the Bretton Woods Conference held in July 1944?

Explain the significance of the fixed exchange rate system established at the Bretton Woods Conference.

What event in 1967 marked the first major challenge to the Bretton Woods system?

Describe the impact of President Nixon's decision in 1971 on the gold standard.

How do businesses manage foreign exchange risk when operating internationally?

What role do investors play in the foreign exchange market?

Why do some governments, like the Chinese government, seek to devalue their currency?