The collapse of the Bretton Woods exchange system
Citations (1)
- Nixon Ends Convertibility of U.S. Dollars to Gold and Announces Wage/Price Controls whole source
Federal Reserve History source for the end of gold convertibility and Bretton Woods.
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Consequences
what this set in motion, following the causal links
- enabled Stagflation breaks the old Keynesian consensus 1973 The end of Bretton Woods and the Great Inflation arrived as part of the same policy crisis.
- preceded Friedman awarded the Nobel Memorial Prize in Economic Sciences 1976 The 1970s crisis increased the standing of monetarist critiques.
- triggered The Volcker shock 1979 High inflation created the conditions for Volcker severe anti-inflation policy.
- enabled New Keynesian economics answers the market-clearing critique 1991 The crisis forced Keynesian economics to rebuild itself with stronger microfoundations.
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Linked events (1)
- this enabled Stagflation breaks the old Keynesian consensus