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The Nixon shock was the effect of a series of economic measures, including wage and price freezes, surcharges on imports, and the unilateral cancellation of the direct international convertibility of the United States dollar to gold, taken by United States president Richard Nixon on 15 August 1971 in response to increasing inflation.
The plan was announced on August 15, 1971 in a national televised address. Nixon declared that the gold window would be closed and that gold would no longer be transferable to US dollars. This created an 8 percent devaluation to the dollar, as compared to other major currencies of the time, stimulating American exports and the domestic economy.
The United States dollar was devalued by 10%, marking the second time in 14 months that the official worth of the dollar, in relation to other major currencies of the world, was reduced. Specifically, U.S. President Nixon asked Congress to approve the official price of an ounce of gold from $38.00 to $42.22 (or changing the value of US$100 from ...
The dollar price in the gold free market continued to cause pressure on its official rate; and soon after a 10% devaluation was announced on 14 February 1973, Japan and the OEEC countries decided to let their currencies float. A decade later, all industrialized states had done the same. [4] [5] [6]
Trump and his advisors have also pledged to devalue the dollar—a sudden reversal of a century-long pillar of global business, which would not only reignite inflation but reduce the purchasing ...
This created a new U.S. dollar that was backed by 1.50 grams (23.22 grains) of gold. However, the previous dollar had been represented by 1.60 g (24.75 grains) of gold. The result of this revaluation, which was the first devaluation of the U.S. dollar, was that the value in gold of the dollar was reduced by 6%.
Exactly 50 years ago, a beleaguered President Richard M. Nixon entered the Oval Office, stared into a television camera and performed an act that still echoes in today's very different political ...
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