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  1. After World War II, a new international monetary system called Bretton Woods was created. Bretton Woods established three main things: (1) the U.S. dollar was to be an international reserve currency, (2) the U.S. dollar would be backed by gold at a price of $35 per ounce, and (3) any country could exchange dollars for gold. Countries running trade surpluses with the US sought to exchange their dollars for gold, and this rapidly shrunk US gold reserves. This then led to the so called Nixon shock - President Richard Nixon effectively ending the Bretton Woods
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