POLI 1501 Lecture 6: Lecture 6
11 Feb 2019
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Document Summary
U. s. came up with this system to dominate the world economy after wwii. U. s. will exchange dollars for gold (/ounce) U. s. becomes the backing of the global monetary system. Stabilizes the economy and facilitates economic cooperation. As foreign dollar holdings go up, they begin to ask for gold. Gold becomes more valuable than the dollar. People no longer have faith in what is backing the monetary system (the. It is very difficult for the u. s. to compete with other countries. August 1971 - u. s. goes off of the bretton woods system. Conceptual - the u. s. dollar no longer backs the monetary system. Protests, riots, etc. over civil rights issues. Social problems in the u. s. provide the soviets a way to say that their approach (communism) is better. They point out problems in the u. s. But, relative to the strength of the soviet union, there is a relative decline. Nixon"s engages in d tente - a different form of foreign policy.
