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Undid revision 1196871439 by 173.73.138.60 (talk) Once again, see WP:ENGVAR - Nixon was American |
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[[File:Nixon 30-0316a.jpg|thumb|Richard Nixon in 1971]]
{{Economics sidebar}}
The '''Nixon shock''' was a series of economic measures undertaken by United States [[President of the United States|President]] [[Richard Nixon]] in 1971, in response to increasing inflation, the most significant of which were [[wage freeze|wage]] and [[price freeze]]s, surcharges on imports, and the unilateral
Although Nixon's actions did not formally abolish the existing [[Bretton Woods system]] of international financial exchange, the suspension of one of its key components effectively rendered the Bretton Woods system inoperative.<ref name=":1">{{Cite book|last=Oatley|first=Thomas|url=https://books.google.com/books?id=4GJoDwAAQBAJ|title=International Political Economy | edition = 6th |date=2019|publisher=Routledge|isbn= 978-1-351-03464-7|pages= 351–52}}</ref> While Nixon publicly stated his intention to resume direct convertibility of the dollar after reforms to the Bretton Woods system had been implemented, all attempts at reform proved unsuccessful. By 1973, the current regime based on [[floating currency|freely floating]] [[fiat currency|fiat]] currencies ''[[de facto]]'' replaced the Bretton Woods system for other [[global currency|global currencies]].<ref>{{cite news |last1= Lowenstein |first1=Roger |title=The Nixon Shock |url= https://www.bloomberg.com/news/articles/2011-08-04/the-nixon-shock |access-date=25 March 2019 |work= Bloomberg |date=August 5, 2011}}</ref>
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[[File:Price of gold.webp|thumb|Price of gold 1915–2022]]
[[File:Price of oil nominal price.webp|thumb|Price of oil 1946-2022]]
==Background==
{{see also|Closure of the Suez Canal (1967–1975)}}
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