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<p>[QUOTE=&quot;Promo, post: 1993544, member: 72204&quot;]It was a good thing we got off the gold standard because it helped with the recovery from the Depression since this affected three economic variables. These three variables would be exports, investment and real wages.</p><p><br /></p><p>Exports: Going off gold made domestic output cheaper abroad and raised exports.</p><p><br /></p><p>Investment: Going off gold made it more profitable to invest. Countries that had more depreciated exchange rates allowed investment to recover more quickly.</p><p><br /></p><p>Real wages: Going off gold raised inflation or price levels. Since nominal wages were &quot;sticky&quot; this led to lower real wages and less unemployment or more hiring since labor was now less expensive. This employment regenerated demand and made for recovery.</p><p><br /></p><p>We also had double-edged sword with the Brenton Woods system where other countries were relying on the U.S. Dollar.[/QUOTE]</p><p><br /></p>

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