Why did the Bretton Wood system Collapse?

The Bretton Woods system collapsed mainly due to regulations put forth by President Johnson in the 1970’s, which caused tension between the French and the United States. Due to these regulations put forward by President Johnson, the U.S. was printing more cash they were allowed by the original Bretton Woods agreement. The French threatened to withdraw if the US could not back up all of their currency with gold. Instead of complying with the French and tying their currency to gold, the US decided to opt out of the Bretton Woods agreement and take their currency off the gold standard completely.

 

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