The Fed's Unwillingness to Redeem

Nixon wanted loose money. He could have tightened monetary policy to the point where the dollar was worth $135 an ounce of gold, but he was running for reelection. The 1970s saw a lot of consumer price inflation after arguably the Fed's hands were untied. And 71 is as much a symptom of that inflation and Nixon's unwillingness to stop it by tight money.