Bretton Woods, World War, United States discussed on The Majority Report with Sam Seder

Automatic TRANSCRIPT

Bretton woods for a moment what what is bretton woods when did that happen in in uh what has changed since then sure so uh bretton woods was an international monetary system that was set up uh after world war two and uh the basic thinking was that you know the world needed some uh stability after the war and that what we what we ought to do was set up a system where uh we had fixed exchange rates to what you had were forty four countries coming together and agreeing to participate in this construction and creation of this monetary system set up to fix the value of one country's currency relative to another country's currency and through so what happened is 43 country said we agree it's going to be the us dollar will all fix our currencies to the value of the us dollar in the us said okay here's what we'll do will agree to convert dollars into gold at a fixed price and so it was a form of vague a gold standard system sits fixed exchange rate system and it was in place um as you such from uh 1944 from the end of the war all the way up until nixon uh ended it 1971 so we went from a system of of fixed exchange rates where one country's currency exchange for another country's currency at a fixed price and through the us dollar into gold at a fixed price to a system where most currencies in the world today are what we call floating currencies there uh no longer fixed to another country's currency or a basket of currencies or gold or anything else they uh the value of the currency changes from day to day howard our minute to minute in financial markets so it's a very different type of monetary system that we have today that's right because when we went off gold 1971 everything but in some respects.

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