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David Weinkrantz's avatar

Financial crises may persist because on August 15, 1971 President Nixon closed the gold window.

This enabled the U.S. Government to run larger deficits, which in turn lead to financial instability.

Ira Stoll's avatar

Thanks for reading and for the intelligent comment. Of the ten crises studied in this Calomiris paper, a good share of them are from before 1971.