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If it breaks a certain threshold, then you can be certain it will be the global reserve currency again. People often forget how stable the world economy was und
by 0x8BADF00D 7y ago
If it breaks a certain threshold, then you can be certain it will be the global reserve currency again. People often forget how stable the world economy was under Bretton Woods.
- et2o 7y agoThis is a kind of revisionist argument that I read a lot. The Bretton Woods system only existed for about 30 years until it collapsed from a variety of pressures; it was unsustainable. Even during its short lifetime various suboptimal policy adjustments were required to maintain it. I think it's a mistake to attribute the stability of the post-war world economy to the Bretton Woods system alone; there are numerous factors that coincided. Bretton Woods probably helped to some extent insofar as it allowed the US to rapidly exert a lot of influence, but we in the US still do that now without the Bretton Woods system. https://history.state.gov/milestones/1969-1976/nixon-shock https://history.state.gov/milestones/1969-1976/nixon-shock
- notfromhere 7y agoThere's not enough gold to go around. Gold isn't a very stable base for economies, as we can see throughout the hundreds of years of gold standards