The Bretton Woods system was abandoned by the U.S. government in 1971.\nIn order to learn to avoid the structural flaws that led to the collapse and ensure\na more stable economic condition in the future, this article aims to research\nthe cause of the collapse. It elaborates on the two main causes of the\nBretton Woods system: structural ones, such as the incompatible role of the\nUSD and the conflicting sovereign goals, and the operational ones, such as\nthe reluctance of other countries to follow the exchange rate rules. It then\ndisplays viewpoints from these two causes, and analyses them, that is, strengthens\nor undermines them, with facts and reasoning. Finally, it reaches the\nconclusion that the Bretton Woods system broke down in 1971 due to structural\nfactors instead of operational ones and gives some brief lessons from the\nfailure.
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