Fixed exchange rate system
Fixed exchange rate system is the system in effect from the end of World War II until August 1971. Under the system, the U.S. dollar was linked to gold at the rate of $35 per ounce, and other currencies were then tied to the dollar.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Fixed exchange rate system. The system in effect from the end of World War II until August 1971. Under the system, the U.S. dollar was linked to gold at the rate of $35 per ounce, and other currencies were then tied to the dollar.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
