Nixon shock

Popular Terms
A phrase that is used to describe the measures taken in 1971 by former US president, Richard Nixon to tackle the 1970 inflation. The measures included a 10% import tax, a 90-day freeze on price and wages and most importantly, the closing of the "gold window" that ended the convertibility of US dollar into gold. This had the greatest impact on the Bretton Woods system, which lead to its end.


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