Comparing the crashes before and after the end of the bretton woods agreement 1971 should not be done. Those are to separate currencies, they had still the same name “USD” but the attributes changed dramatically and this gave the FED much more tools during market crashes.
E.g. its simpler to reflate the stock prices if the FED just issues trillions of $ and ignores CPI and Asset price inflation. That was not so easy in currency system that was Gold backed.
This site gathers some of the economic data that got skewed after the currency system change.
OK, well out of interest I’ve just done you a chart with grey lines averaging crashes before & after Bretton Woods. (‘After’ includes 2020 on this one.)
Not sure whether the difference is significant. The post-Bretton (dashed) line shows a bounce back for the first few weeks, but by year end they’re much the same.
Comparing the crashes before and after the end of the bretton woods agreement 1971 should not be done. Those are to separate currencies, they had still the same name “USD” but the attributes changed dramatically and this gave the FED much more tools during market crashes.
E.g. its simpler to reflate the stock prices if the FED just issues trillions of $ and ignores CPI and Asset price inflation. That was not so easy in currency system that was Gold backed.
This site gathers some of the economic data that got skewed after the currency system change.
https://wtfhappenedin1971.com/
OK, well out of interest I’ve just done you a chart with grey lines averaging crashes before & after Bretton Woods. (‘After’ includes 2020 on this one.)
https://i.postimg.cc/wMgs7Jn0/Bretton.png
Not sure whether the difference is significant. The post-Bretton (dashed) line shows a bounce back for the first few weeks, but by year end they’re much the same.