Nobody really decided to end the world gold standard in 1971. They would have liked to keep it. By all appearances, it was working fine. The previous two decades had been a time of prosperity and abundance, not only for the U.S., but countries worldwide including the emerging markets.
There was never any grand international conference in which it was decided to transition to a floating currency system. There were no treaties, agendas or plans. When President Richard Nixon announced the closing of the "gold window," on Aug. 15, 1971, it was supposed to be a temporary measure.
Read Full Article »