Tag: Bretton woods

For nearly 200 years, a form of the gold standard governed global monetary policy until its final abandonment in 1971 by the United States. This history provides crucial context to evaluate the modern debate: is gold standard any good, or is it an outdated relic of the past?

The gold standard provided relative long-term price stability during its peak between 1871 and 1914, but its inherent inflexibility ultimately contributed to its downfall. This historical evidence highlights the complex debate surrounding this monetary system and raises the question: Is the gold standard a good thing for modern economies?