Abstract
The formal suspension by the Nixon administration of gold convertibility of dollar balances owned by foreign central banks confirms the demise of the international monetary system of the capitalist world—a system which was set up in 1944 at the Bretton Woods conference. This system has been a long time dying. Nevertheless, the obituary notice came as a big shock because it was accompanied by the sudden appearance of a new phenomenon—the floating dollar. It is now floating not far below the surface of its former parity with foreign currencies. What keeps it from sinking much further is the continuous heavy buying of dollars by foreign central banks (with their own currencies).This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
