The current crisis has rekindled interest in the reform proposals and is perhaps the greatest chance of changing the international monetary system since 1944. We put forward a key idea: the creation of an international currency and an international reserve pooling system. The U.S. dollar was the currency with the most purchasing power and was the only currency supported by gold. In addition, all the European nations involved in the Second World War were heavily indebted and transferred large quantities of gold to the United States, which contributed to the domination of the United States. As a result, the U.S. dollar appreciated strongly in the rest of the world and thus became the key currency of the Bretton Woods system. Until the First World War, most countries were on the gold standard. But they cut the tie on gold so they could print the money they needed for their war costs. This influx of money has caused hyperinflation, as the supply of money has overwhelmed demand. After the war, countries returned to the security of the gold standard. It took 12 years for the system to be fully operational.
It was not until December 1958 that Western European countries converted their currencies to current operations. (Although The Obligations under Article VIII were not officially resumed until February 1961). Under the system, each member (with the exception of the United States) intervened in the foreign exchange market, either when buying or selling dollars, to maintain the parity of its currency within the 1% range. The U.S. Treasury, meanwhile, set the price of the dollar at $35.00 per ounce by buying and selling gold. Thus, each currency was anchored to the dollar and indirectly to gold. Although the ministers and central bank governors of the Group of Ten agreed at the IMF`s annual meeting in September 1965 to draw up an emergency plan for the creation of reserves, much of the second half of 1965 was overshadowed by differences between the United States and France. They argued as to the extent to which the proposed new reserve units should be closely linked to gold and how the power to create reserves should be distributed among different countries. The conflict between French and American opinions was highlighted in the Ossola report published on 11 August by the Group of Ten (The Financial Times, August 11, 1965).