Today, economists debate the role played by the gold standard system in the past and what lies ahead. The dollar: Fiat Money, a documentary by ABC, is a fascinating study of the current US monetary system that every American should see. *
In 1973, the US abandoned the gold standard system, ushering in a new era of fiat money. In this system, currency has no physical asset backing it, and the value of money is determined solely by the trust people have in it. With the US dollar, this trust is born of the full faith and credit pledged by the US government. Critics foresee a looming economic crisis, claiming the system makes it easier to run deficits and turn to expansionary policies. Others argue that inaction would be catastrophic, and the harmful effects of the crisis would exceed any harm the current system is causing. Get a detailed understanding of the historically important decision and its repercussions – watch ABC’s documentary now!
