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The fresh Government Reserve tightened the money also have and you will inflation are drastically low in the newest 1980s, and hence the worth of the fresh U.S. money stabilized. It was largely as a result of the prevalent monetary view from the time you to definitely rising prices and you can genuine monetary development was linked (the brand new Phillips curve), thereby inflation is actually thought to be relatively ordinary. Underneath the Bretton Woods program based immediately after World war ii, the value of gold try repaired to $thirty-five for each ounce, as well as the worth of the fresh U.S. dollar are thus anchored to the value of gold.
