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Alfore 4mo ago

I have an econ question for nostr.

In Bretton Woods the dollar was pegged to gold and all other currencies pegged to the dollar because other countries aka. Germany, France and Britain did not have enough Gold for Mark, Franc and Pound to be backed by Gold. At least thats what I think I understood.

Why is the amount important? - lower Gold reserves lead to lower prices in poor countries. Trade advantages will rush the gold in. Naturally inflation will do the trick.

Or is it a lack of capital. I can't wrap my head around this.

#asknostr #macro #economics

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Kayne 4mo ago

No.

All the currencies were pegged to gold or resources.

USD did not become a reserve currency until after the gold standard was dropped.

Before that most countries either had their own gold or they were using British silver as their reserve currency

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satoshi jr 4mo ago

I was not under the impression the agreement was to resolve a lack of gold.

But now that I think about it I don’t know why they agreed to anything at all

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satoshi jr 4mo ago

So at least according to chargpt the reason they didnt let the gold flows to adjust for trade imbalances is because they didnt want to deal with the pain of it.

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Alfore 4mo ago

If that is the reason.

Imagine a bunch mobsters sitting around the table all caught and convicted of felony at least once. The godfather like trust me bra's I'll peg the dollar to gold and you'll peg to the dollar no need to show the miney