The Bretton Woods System was established in 1944 during a conference in Bretton Woods, New Hampshire. It aimed to create a stable international monetary framework after World War II. The system fixed exchange rates between currencies and linked them to the U.S. dollar, which was convertible to gold. This arrangement promoted economic stability and growth among participating countries. The Bretton Woods System also led to the creation of key institutions, such as the International Monetary Fund (IMF) and the World Bank. These organizations were designed to facilitate international trade, provide financial assistance, and promote economic cooperation among nations. The system lasted until 1971, when it was abandoned in favor of floating exchange rates.