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The US left the gold standard well before 1971. Central banks do not create currency, they create bank reserves. There is no indication that it drives money cre
by thehumanmeat 2y ago
The US left the gold standard well before 1971. Central banks do not create currency, they create bank reserves. There is no indication that it drives money creation. Let me know where I can spend bank reserves to buy goods and services. Money is created from banks, and mostly done so off-shore away from the purview of the central bank.
https://en.wikipedia.org/wiki/Eurodollar https://en.wikipedia.org/wiki/Eurodollar
- choxi 2y agoWhat do you mean? I thought the US dollar was fixed to gold between WWII and 1971: > On 15 August 1971, the United States ended the convertibility of the US dollar to gold, effectively bringing the Bretton Woods system to an end and rendering the dollar a fiat currency https://en.wikipedia.org/wiki/Bretton_Woods_system https://en.wikipedia.org/wiki/Bretton_Woods_system
- JumpCrisscross 2y ago> thought the US dollar was fixed to gold between WWII and 1971 The dollar was convertible into gold at a fixed rate. We still printed more dollars than there was gold.