Final answer:
The IMF, created after the Bretton Woods Conference, sought to stabilize international currencies and facilitate trade, providing financial assistance to countries. It works alongside the World Bank, and while the International Trade Organization was not established, GATT was created, leading to the WTO's formation.
Step-by-step explanation:
The IMF and Its Role
The Bretton Woods Institutions include the International Monetary Fund (IMF) and the World Bank. The IMF was originally created to maintain the parity between the US dollar and other currencies, eliminate currency exchange restrictions, and facilitate the expansion of international trade under the Bretton Woods System. Its role has evolved over time to support countries by providing loans to help balance payments difficulties and implementing poverty reduction strategies.
During the establishment period of the Bretton Woods system, the IMF played a crucial role in rebuilding war-torn Europe, as well as shaping policies to prevent financial crises similar to the Great Depression. Member countries are assigned quotas that determine their financial commitment to the IMF, voting power, and access to financing. The IMF's effectiveness has been a subject of discussion and sometimes controversy over its history, particularly in relation to globalization and economic policies.
Bretton Woods Conference and the Proposed Institutions
The Bretton Woods Conference, a gathering of allied nations, also discussed the creation of other institutions, including the International Bank for Reconstruction and Development (now part of the World Bank Group) and a proposed International Trade Organization (ITO) that was not established; instead, the General Agreement on Trade and Tariffs (GATT) was created, which later led to the formation of the World Trade Organization (WTO) in 1995.