This
paper examines the post-war international monetary system, which was introduced to deal with the shortcomings of a freely
fluctuating
exchange rates regime. It starts by presenting the history of the Bretton Woods System (BWS) and its features. The
paper then outlines the pre-requisites for the BWS to operate. A series of events that led to the collapse of the BWS are also studied alongside its inherent defect (the 'n'th country problem).