State the major achievements of Bretton woods Institutions.

State the major achievements of Bretton woods Institutions. 

Ans. Some of the achievements of Bretton Woods system are as follows: 

(a) International reserves have increased substantially. 

(b) Exchange rates have moved to flexible, regimes, and away from the fixed-but adjustable pegs which proved so dangerous in the 1990s. 

(c) It is providing larger borrowers, holding reserves greater than 150% of maturity short and long-term debt. 

(d) External balances have improved with current accounts in most of the emerging world in surplus or modest deficit. Only 2 of the 20 largest borrowers now are running deficits in excess of 3 per cent. 

(e) With the restoration of domestic stability and recovery in external demand, Growth rates have improved. 

(f) Aggregate growth currently is running at its highest rate since the on set of the crisis in 1997. (g) Important progress has been made in building credibility for new monetary policy. 

(h) There have been improvements in fiscal performance, like governments achieving and sustaining large primary surpluses. 

(i) Rate of inflation is generally moderate. 

(j) Governments have made major investment in recapitalizing and reconstructing their troubled financial system. 

(k) The market for emerging market debt has also matured. There has been more differentiation in the response of spreads during the recent correction. 

(l) Borrowing costs have fallen, capital market access was restored for many countries, and credits growth resumed.