Define the Bretton Woods system.

The Bretton Woods system was a pivotal monetary management system established in 1944 that pegged various national currencies to the US dollar. This arrangement meant that countries would maintain fixed exchange rates between their currencies and the US dollar, which was itself convertible into gold at a fixed rate.

The rationale behind this system was to provide stable exchange rates, which would encourage international trade and investment in the post-World War II economic landscape. The US dollar, as the world's primary reserve currency, played a central role in facilitating global economic stability. This system enabled countries to manage their currencies in a way that promoted economic stability while also providing a mechanism for international cooperation and financial oversight through institutions like the International Monetary Fund (IMF).

Overall, the Bretton Woods system was a fundamental approach towards establishing a stable global economic order in the aftermath of the war, emphasizing the importance of fixed exchange rates and international monetary cooperation.