Thus, Friedman's expectation--that such stable "monetary experience" under different forms of the gold standard and fixed exchange rates would "characterize our future"--could not survive his successful campaign to destroy the attenuated vestiges of the true gold standard incorporated in the Bretton Woods gold-exchange standard
, inaugurating the era of inconvertible currencies and floating exchange rates (1971-present), associated as it has been with increased monetary and economic instability.
Although the authors of these publications note differences between the classical pre-World War I gold standard and the post-World War I gold-exchange standard
, they nonetheless claim that the latter "gold standard" was operational during the 1920s and early 1930s.
Under the gold-exchange standard
that governed international finance prior to August 1971, a shift out of dollars would have led to a transfer of U.
The post-WWI system was a form of the gold-exchange standard
After the war, however, rather than accept the consequences in the form of a depreciated pound, Britain insisted on instituting a gold-exchange standard
with other industrialized countries, with the pound valued at pre-war par.