Ending Bretton Woods
Evidence from the Nixon tapes
Bibliographic Data
| ID | 3379892 |
|---|---|
| Authors | James L Butkiewicz (0000-0001-9977-2024, University of Delaware), Scott Ohlmacher (US Census Bureau) |
| Year | 2021 |
| Volume | 74 |
| Issue | 4 |
| Pages | 922-945 |
| Publication date | 2021-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic History Review (JOURNAL) |
| Journal identifiers | ISSN: 0013-0117 • E-ISSN: 1468-0289 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ehr.13052 |
| OpenAlex | W3128760846 |
| Language | EN |
| Citations received | 1 |
| References cited | 16 |
Richard Nixon's August 1971 announcement of a set of policies known collectively as the New Economic Policy (NEP), or the 'Nixon shock', effectively terminated the Bretton Woods system (BWS) of fixed exchange rates that had governed the international monetary system since 1944. While there are many accounts of Nixon's decision to end the BWS, the secret Nixon White House tapes provide unique insights into the decision-making process and Nixon's struggle with this decision. Using the tapes as evidence, we find that Nixon resisted ending the BWS for political reasons and did not fully understand the NEP's strategy, particularly the fact that the domestic policies were designed to provide cover for the international policies. The tapes also clarify that the decision to adopt the NEP was made prior to the Camp David Summit of 13-15 August 1971 in response to general speculative pressure. While the US reacted to pressure on the dollar, Nixon and Treasury Secretary John Connally attempted to appear to be driving decisions for the domestic electorate. The temporary float of exchange rates as part of the NEP inevitably became permanent as a result of Nixon's choice of advisors and his preferences for open capital flows and stimulative monetary policy
Capital (architecture) · Economic history · Economics · Float (project management) · Keynesian economics · Law and economics · Liberian dollar · Management · Monetary economics · Monetary policy · Political economy · Political science · Politics · Shock (circulatory) · Summit · Treasury · Finance · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · History · International Development and Aid · Law
International monetary cooperation since Bretton Woods
Richard Nixon and Europe
The political economy of wage and price controls
Debt Management and the Term Structure of Interest Rates
The Haldeman Diaries
Central Bank Cooperation at the Bank for International Settlements, 1930–1973
Gold and the Dollar Crisis. The Future of Convertibility
How Richard Nixon Pressured Arthur Burns
An Interview with Paul Volcker
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2024 - 2024 (1) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 1 |