The Bretton Woods agreement resulted in a commitment not to use devaluation as a weapon of competitive trade policy.

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The Bretton Woods agreement, signed in 1944, aimed to establish a stable international monetary system by pegging exchange rates to the US dollar, which in turn was pegged to gold at a fixed rate. One of the principles of the agreement was a commitment by member countries not to devalue their currencies in order to gain a competitive advantage in trade. This commitment was known as the "no devaluation pledge."

The Bretton Woods Agreement Resulted in a Commitment Not to Use