As I understand it, the US was facing a fiscal crisis in the late 1960s: the USD was overvalued due to massive spending on the Vietnam War and social programs, and other nations, antsy about losses, started trading in their USD reserves for gold. This twisted Nixon's arm into suspending the convertibility of the USD into gold, which started the death spiral of Bretton Woods.
My question is this: if Nixon, for some reason, did not suspend the convertibility of the USD into gold, would there have been a global economic crisis? What would it have looked like?
If the US had remained on the gold standard after 1971, would there have been an economic crisis?
byu/Goered_Out_Of_My_ inAskEconomics
Posted by Goered_Out_Of_My_