1. Established a fixed exchange rate system linked to the US dollar and gold, which ended the chaotic international financial order and created favorable external conditions for the expansion of international trade and world economic growth;

2. As a reserve currency and a means of international settlement, the US dollar makes up for the shortage of gold, improves the global purchasing power and promotes international trade and transnational investment.

Disadvantages:

1, there is a contradiction between the solvency of the US dollar and confidence in the US dollar, which is manifested in the contradiction between the status of the US dollar as an international currency reserve and its international solvency, the asymmetry of policy coordination between reserve currency issuers and non-reserve currency issuers, and the dilemma of internal and external goals under the fixed exchange rate system.

2. The exchange rate system is rigid, and it is impossible to automatically achieve balance of payments through exchange rate fluctuations. The responsibility for adjusting the balance of payments imbalance mainly falls on the non-reserve currency issuing countries, at the expense of their economic development goals.

Historical background:

During the 20 years between the two world wars, the international monetary system was divided into several competing monetary groups, and the currencies of various countries were devalued and fluctuated violently.

In the late World War II, the British and American governments conceived and designed the postwar international monetary system for their own interests, and put forward the "White Plan" and "Keynesian Plan" respectively. Both "White Plan" and "Keynesian Plan" aim at establishing international financial institutions, stabilizing exchange rates, expanding international trade and promoting world economic development, but their operating modes are different.

Since the United States became the leader of the capitalist world after the world economic crisis and World War II, the international status of the US dollar has been stabilized by its strength in the international gold reserve. 1in April, 944, the two sides reached the Joint Statement of Experts on the Establishment of the International Monetary Fund, which embodied the White Plan.

The key figure in the establishment of the Bretton Woods system is Harry White, former assistant secretary of the US Treasury. With the post-war status of the United States, which has three-quarters of the world's gold reserves and strong military strength, his proposal to strengthen the status of the dollar defeated Keynes, the head of the British delegation and a great economist. The "White Plan" became the blueprint for the final resolution adopted at the Bretton Woods Conference.