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by Patrick Barron via Mises The seeds of sound-money destruction were sown at the 1944 Bretton Woods Conference, which established that US dollars could be held as central bank reserves and were redeemable for gold by the US Treasury at thirty-five dollars an ounce. This was the so-called gold exchange standard, but only foreign central banks and some multinational organizations, such as the International Monetary Fund (IMF), enjoyed this right of redemption. The system depended upon the solemn promise by the US that it would refrain from issuing unbacked dollars. The watershed event that ushered in a new malignant, pure fiat money era occurred on August 15, 1971, when the US abandoned the gold exchange standard in order to stop the drain on the US gold stock.

United statesUnited kingdomSouth koreaEast germanyWest germanyJacque rueffPatrick barronDeutsche markLyndon johnsonAlasdair macleodInternational monetary fundEuropean central bankSchool of bankingEuropean parliamentUniversity of iowaUniversity of wisconsin