Forty years ago today the United States ended the Bretton Woods International Monetary System. This video shows then US President Richard Nixon making the announcement to the world:
No longer were fixed exchange rates the norm for the global economy. Floating rates prevailed, and it was hoped that financial and currency markets would become more stable. That has not been the case. As we move into the fourth year of the global financial crisis a number of scholars and policy-makers have called for a new international monetary system. Some call for a new global reserve system based on Special Drawing Rights, others call for a global GDP-linked bond, and others such as Ron Paul and Robert Zoellick long for those days of the gold standard.
What are your thoughts on this 40th anniversary of such a transformative event? Where do we go now?