oussama94
05-28-2017, 19:34
On August 15, 1971, it became official: the Bretton Woods system, a system
used to fix the value of a currency to the value of gold, was abandoned
once and for all. While it had been exorcised before, only to subsequently
emerge in a new form, this final eradication of the Bretton Woods system
was truly its last stand: no longer would currencies be fixed in value to
gold, allowed to fluctuate only in a 1 percent range, but instead their fair
valuation could be determined by free market behavior such as trade flows
and foreign direct investment
used to fix the value of a currency to the value of gold, was abandoned
once and for all. While it had been exorcised before, only to subsequently
emerge in a new form, this final eradication of the Bretton Woods system
was truly its last stand: no longer would currencies be fixed in value to
gold, allowed to fluctuate only in a 1 percent range, but instead their fair
valuation could be determined by free market behavior such as trade flows
and foreign direct investment