Bretton Woods Agreement

What Does Bretton Woods Agreement Mean?
A 1944 agreement made in Bretton Woods, New Hampshire, which helped to establish a fixed exchange rate in terms of gold for major currencies. The International Monetary Fund was also established at this time.

Investopedia explains Bretton Woods Agreement
This agreement governed currency relationships until the early 1970s, when a floating exchange rate system was adopted. Before its breakdown, the agreement was useful in maintaining order and accomplishing common objectives among the states that created it.