Bretton Woods and the U.S. decision to intervene in the foreign-exchange market, 1957-1962

RePEc Short ID: phu403
ORCID iD: 0000-0002-3525-9093

Bordo, Michael D.; Humpage, Owen F.; Schwartz, Anna J.

doi:10.26509/frbc-wp-200609

Working Paper

Bretton Woods and the U.S. decision to intervene in the foreign-exchange market, 1957-1962

Abstract: The deterioration in the U.S. balance of payments after 1957 and an accelerating loss of gold reserves prompted U.S. monetary authorities to undertake foreign-exchange-market interventions beginning in 1961. We discuss the events leading up to these interventions, the institutional arrangements developed for that purpose, and the controversies that ensued. Although these interventions forestalled a loss of U.S. gold reserves, in the end, they only delayed more fundamental adjustments and, in that respect, were a failure.

Keywords: Foreign exchange administration; Bretton Woods Agreements Act;

https://doi.org/10.26509/frbc-wp-200609