Money Matters: An IMF Exhibit -- The Importance of Global Cooperation

System in Crisis (1959-1971)

Part 7 of 7

 

Conflict &
Cooperation
(1871 - 1944)

Destruction &
Reconstruction

(1945 - 1958)

The System
i
n Crisis
(1959 - 1971)

Reinventing
the System

(1972 - 1981)
Debt &
Transition

(1981 - 1989)
Globalization and Integration
(1989 - 1999)
 
 
 

Bretton Woods System Collapses

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On August 15, 1971, the United States stunned the world by declaring that it would cease redeeming dollars for gold from its reserves. With this, the dollar's link to gold was severed, dismantling the foundation of Bretton Woods. The financial system that had helped bring a quarter century of prosperity to the industrial world had finally collapsed.

With nothing concrete backing the U.S. dollar, would the world lose confidence in it? What would replace the Bretton Woods system?

Nixon
credits

 

   
A Growing Economy Needs Growing Liquidity

Decolonization
and Development

The Foreign Exchange Famine
     
The Dollar Glut The Incredible Shrinking Gold Supply Searching
for Solutions
Bretton Woods
System Collapses

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-->