How did the global system affect the trade and post war recovery?
After the second world war, many countries in the world got together to set up the Bretton Woods system. Under this system, the IMF was supposed to prevent macroeconomic imbalances like the Great Depression and promote free trade. The World Bank was supposed to provide development and reconstruction funding to different nations. These two institutions provided the system under which countries could trade with each other and have other form of economic interaction like capital flows. The stability provided by this system lead to increased trade and the post war recovery in Europe, USA and Japan.