ericfj on Nostr: I think we’re largely in agreement here. However the Austrian alternative to ...
I think we’re largely in agreement here.
However the Austrian alternative to depegging completely merely would have kicked the can down the road. The overextending / Eurodollar part of the problem still exists at a practical level. Gold, because of its physical properties, just wasn’t fast enough as settlement for modern times. Sure, the US definitely took advantage of it- but literally anyone could have (and many did as well).
So yes, Bretton Woods doomed to fail from the beginning. But likely not in the ways even the US foresaw at the time of the agreement.
However the Austrian alternative to depegging completely merely would have kicked the can down the road. The overextending / Eurodollar part of the problem still exists at a practical level. Gold, because of its physical properties, just wasn’t fast enough as settlement for modern times. Sure, the US definitely took advantage of it- but literally anyone could have (and many did as well).
So yes, Bretton Woods doomed to fail from the beginning. But likely not in the ways even the US foresaw at the time of the agreement.