The gold-based Bretton Woods monetary system provided the currency stability necessary for the resumption of international trade.
Then, the abrogation of the Bretton Woods monetary system in 1971 created an artificial demand for gold as an inflation hedge.
The early fruit was the Bretton Woods monetary system, which established the rules governing commercial relations between the big industrial nations.
President Nixon abrogated the Bretton Woods monetary system 40 years ago.
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The breakdown of the gold-based Bretton Woods international monetary system during 1968-71 signaled to Mundell that severe trouble was ahead.
During the 1970s the Bretton Woods international monetary system broke down when Richard Nixon severed the dollar from the price of gold.
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But that short-lived experiment didn't work, and during World War II the dollar's tie to gold was reaffirmed by the Bretton Woods international monetary system.
Doing something effective and substantive, such as creating a modernized version of the gold-based Bretton Woods international monetary system--which lasted from the end of the Second World War until the early 1970s and gave us an era of great, noninflationary economic growth--will not even be broached.
Ever since President Richard Nixon in 1971 killed the Bretton Woods international monetary system by breaking the link between the dollar and gold, the U.S. economy has experienced slower growth, higher average inflation, higher unemployment rates, more bank failures and a series of financial crises that, in total, have reduced our income by about a third.
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The third basic type of gold standard could be called the Bretton Woods system (after the monetary system that was used from 1948 to 1971).
Nor did delegates even think of trying to create a new gold-based, Bretton Woods-like monetary system that would keep currency exchange rates of trading nations strong and stable.
Under a Bretton Woods system, the monetary base consists of fiat dollars (both currency and bank reserves) created by the Federal Reserve.
This guarantee was made by the Gold Reserve Act of 1934, and reaffirmed under the 1944 Bretton Woods agreement for the post World War II international monetary system.
The actual Bretton Woods system failed because the Fed did not manage the size of the monetary base so as to keep the free market price of gold equal to the official price.
More than a few observers have dubbed this meeting Bretton Woods II, a reference to the 1944 international conference that established the post-World War II monetary system.
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