Bretton Woods Agreement of 1944. In line with the so-called ‘Keynes Plan’, the Bretton Woods system imposed tight curbs on international capital movements in order to preserve a system of fixed exchange rates–thereby ruling out most of the cross-border investments and currency trades which had previously been major sources of instability and speculative profits. The Bretton Woods Agreement also required governments to maintain tight restrictions on their domestic financial sectors–including high minimum ratios of capital to assets and liquid reserves to total bank assets, interest rate caps
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