Re:The Bad Economics of Wtfhappenedin1971
by johnea on Saturday January 27, 2024 @08:04PM
(#39161492)
I'm not a bitcoin or gold advocate, but I do think that the end of Bretton-Woods was a disaster.
It didn't have anything to do with gold, but with the fixed international exchange rates of national currencies. These were only allowed to be changed by an agreement from the commitee:
To me it seems, that having a market driven currency exchange rate creates something like a double pendulum chaotic effect. With both the values of goods and services driven by a market that is also driving the values of the underlying currencies...
It didn't have anything to do with gold, but with the fixed international exchange rates of national currencies. These were only allowed to be changed by an agreement from the commitee:
https://en.wikipedia.org/wiki/Bretton_Woods_system#Fixed_exc...
To me it seems, that having a market driven currency exchange rate creates something like a double pendulum chaotic effect. With both the values of goods and services driven by a market that is also driving the values of the underlying currencies...