Nixon Shock 1971 End of Gold Standard

In 1971, President Richard Nixon announced the end of the U.S. dollar’s convertibility into gold—a decision known as the Nixon Shock. This move effectively ended the Bretton Woods system and ushered in the era of fiat currency. From that point forward, global currencies floated freely, subject to market forces and central bank policies. While this increased monetary flexibility, it also introduced volatility and inflation risks. The Nixon Shock changed the nature of global finance, detaching money’s value from physical assets and anchoring it instead in public trust.