History.com has the article FDR takes United States off gold standard.
On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In 1974, President Gerald Ford signed legislation that permitted Americans again to own gold bullion.
For a long time, I have known about the $35 per ounce price of gold and the restrictions on owning gold in the United States. This article told me about some details that I had not realized.
I didn’t realize that went “off the gold standard” since 1933. I did know that we were really off the gold standard since 1971.
How did we manage to go off the gold standard in 1933 and 1971? The Bretton Woods agreement is the answer.
Within the Final Act, the most important part in the eyes of the conference participants and for the later operation of the world economy was the IMF agreement. Its major features were:
- An adjustably pegged foreign exchange market rate system: Exchange rates were pegged to gold. Governments were only supposed to alter exchange rates to correct a “fundamental disequilibrium.”
One final piece of history from the WikiPedia article.
The institutions were formally organized at an inaugural meeting in Savannah, Georgia, on March 8–18, 1946.
I record this information here to pave the way for the next item I am about to post.