Cumulative US Inflation by Decade Since 1913



August 15, 1971: Nixon Takes US Dollar off Gold Standard
President Nixon officially announces the end of the gold standard system of monetary policy for international exchange of gold deposits in an evening address to the country. Nixon’s move to sever the link between the dollar’s value and gold reserves effectively ends the Bretton Woods system of monetary exchange and changes the dollar to a “floating” currency whose value is to be determined largely by market influences. Nixon’s decision results from a run on gold exchanges and rampant speculation in gold markets in Europe, and he changes the US monetary policy after receiving advice from Treasury Secretary John Connally, Under Secretary for Monetary Affairs Paul A. Volcker, and others in a special working group. The dollar becomes a fiat currency, causing a brief international panic before other countries follow suit and also allow their currencies to “float.”


Question: What was the Bretton Woods system?   Answer...




Economics - the social science that deals with the production, distribution, and consumption of goods and services.
Note - a brief written or printed statement providing information.   Pad - a number of pages glued or linked together.
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