The Bretton Woods system worked well through the 1950s and part of
the 1960s. In 1960, there was a dollar crisis because the United States had
run large balance of payments deficits in the late 1950s. Concern over
large foreign holdings of dollars led to an increased demand for gold.
Central bank cooperation in an international gold pool managed to stabi-
lize gold prices at the official rate, but still the pressures mounted.