Black market trading, depressing the price of gold, the deficit of US national debt, the decrease of fiscal expenditure and the decrease of currency circulation. So inflation is serious, which is my personal opinion. The following are others' explanations and online excerpts, I hope they are useful to you! The purpose of abandoning the gold standard is to devalue the dollar and stimulate commodity exports. Is it the main reason or purpose for Roosevelt to abandon the gold standard and stimulate exports? First, let's learn about the gold standard. The so-called gold standard is: "gold coins can be freely minted, bank notes can be freely converted into gold coins, and gold can be freely input and output." After World War I, the gold standard played a role in stabilizing the currency and promoting trade growth. At that time, the gold standard was regarded as a symbol of developed countries, while the "backward countries" represented by China mainly implemented the silver standard. So why did Roosevelt give up this traditional monetary policy? In fact, the main reason is that the original monetary policy failed because of the great crisis. The economic crisis of 1929- 1933 led to a sharp drop in the national income of the United States, and everyone generally felt that there was no money to spend. Arthur Link, an American historian, concluded, "The national income of the United States dropped from $87.8 billion in 1929 to $40.2 billion in 1933, and the per capita income dropped from 68 1 USD to $495. The salary decreased by 40%, the dividend decreased by nearly 57%, and the manufacturing salary decreased by 10%. Therefore, the overall picture of these disaster years is a picture of extreme depression everywhere except the debt structure. The formation of this situation is inseparable from the monetary policy of the Hoover administration. Because at a time when the United States urgently needs a large amount of money supply and vigorously improves the purchasing power of the broad masses, the Hoover administration stubbornly adheres to the so-called "stable money" policy, opposes deficit spending, insists that relief work is handled by local governments, private enterprises and charities, and even makes the poor self-reliant and opposes state relief. Such a monetary policy will only aggravate the economic crisis. After Roosevelt came to power, he faced great pressure. The situation forced him to implement inflation, use federal deficit expenditure to promote employment and implement relief. To implement inflation, we must get rid of the shackles of the gold standard. 1933 On April19, the United States announced the abolition of the gold standard. Abandoning the gold standard led to a rise in Wall Street stock prices, and Wall Street stock trading was extremely active. The total number of shares delivered on this day reached 5 million, which was the most active day in half a year. After the implementation of this policy, the dollar depreciated as scheduled, thus raising the price of goods internally and stabilizing employment. On the other hand, due to the exchange rate changes with other countries' currencies, American goods have maintained their competitiveness in the world market, stimulated exports, and at the same time, invisibly reduced American debt. On the export side, the American export ratio of 1933 increased by 4%, and that of 1934 increased by 27%. By 1935, American exports to all continents had increased to varying degrees, mainly because 1933 gave up the gold standard, and the effect of dollar depreciation began to be reflected in 1934. Freddel, the author of the Biography of Roosevelt, commented: In this way, "Roosevelt made a major change in the federal economic policy (mainly monetary policy), giving up the rigid system of the gold standard and replacing it with a flexible system of managing money. Monetarism has become a key component of the New Deal portfolio. " Morgan had an old partner named Lefenwell, who wrote to Roosevelt and said, "You gave up the gold standard and saved our country from total collapse." Morgan himself said in a rare public statement: "It is said that the president has abandoned the gold standard, which I welcome ... It seems obvious that to reverse the situation of the Great Depression, we must refute and defeat those who advocate deflation." It can be seen that Roosevelt abandoned the gold standard in order to deal with a series of problems brought about by the crisis, such as monetary tightening, falling prices and falling employment rate. Stimulating exports is of course an important purpose of dollar depreciation, but it is by no means the only purpose. It can be said that abandoning the gold standard at that time was a flexible monetary strategy, which gave the United States a broad space to cope with the domestic situation and complex international competition, which can be described as a successful move. This article comes from Camel Paper Network (www. luoto. net. cn). Original source: /a/ Wen Xue/ancient literature/201/0215/52487.html.

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