Final answer:
The 1944 Bretton Woods Agreement established the International Monetary Fund (IMF) and World Bank, setting rules for international monetary and financial stability, with a later indirect result being the World Trade Organization (WTO) in 1995.
Step-by-step explanation:
In 1944, the Bretton Woods Conference was held, establishing the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank) to stabilize the international economy and rebuild Europe post-World War II. The Bretton Woods system fixed currency exchange rates and designated the U.S. dollar as the primary reserve currency. The USSR, initially included, withdrew in 1948, symbolizing the economic divergence between the East and West. Additionally, the effort to establish a third institution, the International Trade Organization, ultimately led to the creation of the General Agreement on Tariffs and Trade (GATT) in 1947, which evolved into the World Trade Organization (WTO) in 1995.
The agreement set a framework for economic cooperation with the goal of preventing future economic crises like the Great Depression. The institutions resulting from the Bretton Woods Conference became operational in 1946, and their ongoing evolution reflects the complex nature of international economic relationships. Today, these institutions continue to shape global economic policies and trade arrangements, exemplifying the enduring impact of the original Bretton Woods Agreement.