The most important of these was the suspension of the convertibility of the U.S. dollar into gold. This step effectively ended the Bretton Woods system established after the Second World War, that is, the order based on fixed exchange rates. The decisions set the stage for the world monetary system's transition to floating exchange rates. The Nixon Shock is regarded as the beginning of a fundamental transformation in the international financial order.
Source: Wikipedia
Frequently asked questions
- What was Nixon Shock?
- The Nixon Shock refers to a series of economic decisions taken by U.S.
- When did Nixon Shock happen?
- 1971 CE
- Where did Nixon Shock take place?
- ABD