The Gold Standard

The global financial crisis (GFC) of 2007-2008, considered the most severe economic downturn since the Great Depression, left lasting impacts on the world economy, exposing the vulnerabilities inherent in the existing financial system.1 At the heart of the GFC was the petrodollar system, which links global trade to the US dollar and perpetuates a debt-based …

2.6 From GFC Lessons to a Bitcoin Alternative: Reinventing Global Finance Read More »

In the mid-20th century, the world economy witnessed the rise of a new monetary system that would transform the global landscape for decades to come. This system, known as the petrodollar, emerged from the ashes of the gold standard, and its influence has been felt far and wide ever since. A powerful tool for the …

2.5 The Power of the Petrodollar: Transforming Middle Eastern Conflicts Read More »

The Bretton Woods system, which came into effect in 1944, was a landmark agreement that established the rules for international monetary and financial relations. It was based on the US dollar’s convertibility into gold at a fixed rate of $35 per ounce, with other currencies pegged to the dollar.1 The system worked well for a while, …

2.4 Nixon Shock: The Death of the Gold Standard Read More »

After World War II, the global economy was in shambles, with Europe and Asia left in ruins, and widespread economic instability was rampant. Inflation, currency instability, and trade barriers plagued the world economy, which was a common theme after all wars. The United States, however, emerged from the war as the largest economy and a …

2.3 The Bretton Woods System and the Rise of the US Dollar Read More »

Aftermath After World War I, the global economy was marked by unprecedented devastation, particularly in Europe, where countries were left in ruins, and poverty was widespread. Currencies were significantly devalued, and the Allied forces borrowed a significant amount of money from the US. Normally, during times of war, debts incurred among allies were forgiven. However, …

2.2 Post WWI: The Economic Fallout Read More »

The Gold Standard The “What is Money?” series of articles explores the various properties that make an economic good more likely to be used as money. After centuries of experimentation and economic evolution, gold emerged as the winner and became the standard for trade across the world.1 The gold standard was a monetary system in …

2.1 The Great War: The Devastating Prelude to the Demise of the Gold Standard Read More »