On the other hand, after the creation of Bretton Woods, where the United States produced half of the world`s manufactured goods and held half of its reserves, the double burdens of international management and the cold war could first be met. Throughout the 1950s, Washington maintained a balance of payments deficit to finance loans, aid, and troops for Allied regimes. But in the 1960s, the cost became less bearable. Until 1970, the United States held less than 16% of international reserves. Adaptation to these changed realities has been hampered by the United States` commitment to fixed exchange rates and the United States` commitment to convert dollars into gold on demand. As the war draws to a close, the Bretton Woods conference was the culmination of about two and a half years of planning for post-war reconstruction by the treasures of the United States and the United Kingdom. == The representatives studied with their British colleagues the reconstruction of what was missing between the two world wars: a system of international payments that would allow nations to trade without fear of brutal currency devaluation or sharp fluctuations in exchange rates – complaints that had almost paralyzed world capitalism during the Great Depression. Economists and other planners understood in 1944 that the new system could only begin after a return to normal after the disruption of World War II. It was expected that the international economy would recover and the system would come into operation after a short transition period of at least five years. The purchase of money would reduce the supply of money and increase its price. If the price of a currency became too high, the Central Bank printed more.
This printing production would increase supply and lower the price of money. This method is a monetary policy often used by central banks to control inflation. In 1967, there was an attack on the pound sterling and a gold race in the sterling zone, and on November 18, 1967, the British government was forced to devalue the pound sterling.  US President Lyndon Baines Johnson was about to abruptly choose either to introduce protectionist measures such as travel taxes, export subsidies and budget cuts – or to take the risk of a “race for gold” and the dollar. From Johnson`s perspective: “The global supply of gold is not enough to make the current system viable – especially since the use of the dollar as a reserve currency is indispensable to create the international liquidity needed to maintain global trade and growth.”  In order to foster the growth of world trade and the reconstruction of Europe after the war, Bretton Woods planners created another institution, the International Bank for Reconstruction and Development (IBRD), which is one of the five agencies that make up the World Bank Group and is now perhaps the most important branch [of the World Bank Group]. The IBRD had an authorized capitalization of $10 billion and was expected to lend from its own resources to take out private loans and issue securities to raise new funds to enable a rapid recovery after the war. The IBRD should be a special agency of the United Nations responsible for providing credit for economic development purposes. All attempts to maintain engagement collapsed in November 1968 and a new political program attempted to transform the Bretton Woods system into an enforcement mechanism in which gold loyalty was to float set either by fiat policy or by limiting the honor of foreign accounts. .