b) End of Bretton Woods system

The Nixon Shock of 1971, a series of economic measures taken by President Richard Nixon, triggered the significant event of ending the Bretton Woods system. This system, established post-World War II, involved fixed exchange rates where currencies were pegged to the U.S. dollar, and the dollar was convertible to gold. Nixon’s decision to suspend dollar convertibility effectively ended this system, leading to a regime of floating exchange rates. This move was a response to economic pressures, including inflation and a growing U.S. trade deficit. The end of Bretton Woods marked a major transition in the global financial system, with long-lasting effects on international trade and finance.