Was Dropping The Gold Standard A Mistake?
Economics Explained
The Gold Standard
The gold standard was first introduced in 19 forty four, towards the end of world two. The breton woods agreement was a system of monetary management to make financial relations between the united states and its new allies easier. Currencies act like shock absorbers for international trade; if left to do their own thing they will naturally increase and decrease in value as economies go through periods of boom and busts. If an economy is doing really well, it ma that its currency will increase in value, giving it the opportunity to invest into foreign economies. This de valued currency will make the economy's exports artificially more competitive global,. which will help domestic industries. And finally, is returning to the gold standard something
