Verisoph story dossier
The wider monetary order around the Japan story: Bretton Woods, the Nixon shock, Smithsonian rates, floating currencies, Maastricht, the ECB, the euro, and central-bank credit contraction in Europe.
The wider monetary order around the Japan story: Bretton Woods, the Nixon shock, Smithsonian rates, floating currencies, Maastricht, the ECB, the euro, and central-bank credit contraction in Europe.
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also in Anatomy of a superpower: the American state, Keynesian economics: demand, depression, and the fight over full employment
Delegates from forty-four nations agreed to fix exchange rates to the US dollar, which was convertible to gold. The conference also created the International Monetary Fund and the World Bank.
also in Anatomy of a superpower: the American state, Paper money, central banks, and credit creation
Under the Bretton Woods system the dollar became the anchor of global trade and central bank reserves. It kept that role after 1971, giving the United States broad influence over world finance.
also in Princes of the Yen: Japan built, bubbled, and broken, The world trade and money order
Under the Bretton Woods system, which lasted until 1971, much of the world had fixed exchange rates with the U.S. dollar, forcing other countries to accept dollars at given rates while the United States printed large amounts of them.
At the time, much of the world had fixed exchange rates with the U.S. dollar under the Bretton Woods system (until 1971).Princes of the Yen
also in Princes of the Yen: Japan built, bubbled, and broken, The passing of the torch: how the American century replaced the British one, The petrodollar order: the dollar without gold
In August 1971, after France demanded conversion of its dollars into gold, the United States suspended the convertibility of dollars into gold, collapsing the fixed exchange rate system and sending the dollar sharply lower.
Consequently, in August 1971, in what is often called the “Nixon shock,” the United States had to suspend the convertibility of dollars into gold. The fixed exchange rate system collapsed and the U.S. dollar fell sharply on world markets.Princes of the Yen
also in 1971: the dollar unchained, Princes of the Yen: Japan built, bubbled, and broken, The world trade and money order
After the yen rose following the Nixon shock, the short-lived Smithsonian Agreement of December 1971 fixed the yen at 308 to the dollar.
Then, the yen rose, triggering the short-lived Smithsonian Agreement, which fixed it at ¥308/$ in December 1971.Princes of the Yen
also in Princes of the Yen: Japan built, bubbled, and broken
Overdone BoJ monetary stimulus after the Nixon shock fueled speculative land purchases and a stock boom, with land prices exploding in 1972 and 1973 and the Nikkei rising from 3,000 in March 1972 to 5,000 by year-end.
Land prices exploded in 1972 and 1973. Capital gains on land holdings produced substantial paper profits.Princes of the Yen
also in 1973: the postwar order breaks, Money and finance, The history of money
After the fixed-rate system broke down, major economies let their currencies float against one another with values set by markets. Floating exchange rates became the norm for the world's leading currencies.
also in Paper money, central banks, and credit creation, Princes of the Yen: Japan built, bubbled, and broken
In 1992 the European Commission published its commissioned study "One Market, One Money," which purported to demonstrate that central bank independence leads to low inflation and served as the scientific basis for the Maastricht Treaty.
Published in 1992 under the name “One Market, One Money,” the study purported to demonstrate that central bank independence leads to low inflation.14Princes of the Yen
also in Building Europe: from coal and steel to union, Paper money, central banks, and credit creation, Princes of the Yen: Japan built, bubbled, and broken, The world trade and money order
The Maastricht Treaty of 1992 laid the foundations for monetary union in Europe and defined the role of a totally independent European Central Bank, becoming the model for central bank independence worldwide.
The most forceful case in favor of central bank independence was made in the Maastricht Treaty of 1992, which laid the foundations for monetary union in Europe.Princes of the Yen
also in Asian crisis and the blocked Asian Monetary Fund, Princes of the Yen: Japan built, bubbled, and broken
In 1997 the currencies of key Southeast Asian countries collapsed by 60 to 80 percent against the dollar, and Thailand, Korea, and Indonesia, facing possible national default, sought IMF emergency funding; their economies deteriorated throughout 1998.
In 1997, the currencies of the key Southeast Asian countries could not maintain their fixed exchange rates with the U.S. dollar. They collapsed by between 60 and 80 percent within the year.Princes of the Yen
also in Big Bang Japan: the Ministry of Finance loses power, Paper money, central banks, and credit creation, Princes of the Yen: Japan built, bubbled, and broken
The European Central Bank, described by the Maastricht Treaty as independent of any government or elected assembly, started operations as scheduled on January 1, 1999.
The treaty described the role and function of the European Central Bank (ECB), which started operations as scheduled, on January 1, 1999, and which is legally the most independent central bank in the world.Princes of the Yen
also in Big Bang Japan: the Ministry of Finance loses power, Princes of the Yen: Japan built, bubbled, and broken, Reichsbank: independence, hyperinflation, and Hitler
When the German economy visibly slowed in 2001, politicians including finance minister Hans Eichel wanted stimulatory policies but found monetary policy in the hands of the independent ECB and fiscal policy constrained by the stability and growth pact.
When the German economy started to slow down visibly in 2001, German politicians, including finance minister Hans Eichel, increasingly felt the need to implement stimulatory policies.5Princes of the Yen
also in Paper money, central banks, and credit creation, Princes of the Yen: Japan built, bubbled, and broken, Quantitative easing begins in Japan, Reichsbank: independence, hyperinflation, and Hitler
In 2002 the ECB ordered the Bundesbank to shrink its credit creation by record amounts; as money circulating in the economy shrank, demand fell and Germany moved into recession.
It ordered the Bundesbank to shrink its credit creation by record amounts in 2002. As the amount of money circulating in the economy shrank, demand fell and the economy moved into recession.Princes of the Yen
also in Paper money, central banks, and credit creation, Princes of the Yen: Japan built, bubbled, and broken, Reichsbank: independence, hyperinflation, and Hitler
On January 1, 2002, new euro paper money and coins were introduced across most of Europe as twelve countries, including Germany with its deutsche mark, gave up their national currencies.
On January 1, 2002, new paper money and coins were introduced in most of Europe. What still seemed an unlikely scenario to many observers as recently as the mid-1990s happened without major obstacles or upsets: Twelve European countries gave up their national currencies.Princes of the Yen
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