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