!! History Commons Alert, Exciting News

Context of 'August 15, 1971: Nixon Takes US Dollar off Gold Standard'

This is a scalable context timeline. It contains events related to the event August 15, 1971: Nixon Takes US Dollar off Gold Standard. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

John Connally.John Connally. [Source: Texas State Archives]President Nixon, disenchanted with Vice President Spiro Agnew’s ability to deliver electoral results and his negative public persona, decides to press Agnew to resign his post. In Agnew’s stead, Nixon wants to appoint Treasury Secretary John Connally, a popular, conservative Texas Democrat who Nixon feels can deliver votes among Southern Republicans and Democrats alike in the 1972 presidential elections. Agnew has privately grumbled about the lack of respect he receives in the White House, and discussed his idea of resigning to enter the business sector. But Connally’s choice would raise objections in Congress, which under the 25th Amendment would have to ratify Connally as the new vice president. Worse, Connally does not want the job, feeling the vice presidency is “useless” and believing he can be more effective in Nixon’s Cabinet. Though Nixon promises Connally an unprececented amount of power as vice president, even making him in essence “an alternate president,” Connally declines the position. Publicly, Nixon reaffirms his support for Agnew, not wishing to disrupt his chances at re-election in 1972. [US Senate, 2007]

Entity Tags: Spiro T. Agnew, Richard M. Nixon, John Connally

Timeline Tags: Nixon and Watergate

President Nixon officially announces the end of the gold standard system of monetary policy for international exchange of gold deposits in an evening address to the country. Nixon’s move to sever the link between the dollar’s value and gold reserves effectively ends the Breton Woods system of monetary exchange and changes the dollar to a “floating” currency whose value is to be determined largely by market influences. Nixon’s decision results from a run on gold exchanges and rampant speculation in gold markets in Europe, and he changes the US monetary policy after receiving advice from Treasury Secretary John Connally, Under Secretary for Monetary Affairs Paul A. Volcker, and others in a special working group. The dollar becomes a fiat currency, causing a brief international panic before other countries follow suit and also allow their currencies to “float.” [New York Times, 8/16/1971, pp. 1]

Entity Tags: John Connally, Paul Volcker, Richard M. Nixon

Timeline Tags: Global Economic Crises

On a two day tour of Europe stopping in London and Paris to meet with finance ministers, Undersecretary of the Treasury for Monetary Affairs Paul A. Volcker meets with the finance ministers of both Britain and France to reassure their governments that the end of the gold standard is in the best interests of both governments and maintain that the United States is in no position to prevent other governments from “floating” their currencies. [New York Times, 8/18/1971]

Entity Tags: Paul Volcker

Timeline Tags: Global Economic Crises

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike