The Bretton Woods International Monetary System was created in 1944 to establish a new global monetary order after World War II. It lasted from 1959 to 1971 and aimed to combine fixed exchange rates with flexibility to handle economic shocks. The system relied on the US dollar being convertible into gold at a set price. However, it faced challenges like currency crises, inflation, and a growing US balance of payments deficit. These issues ultimately led to the demise of the Bretton Woods system in 1971.