One of the landmark developments influencing financial markets in the post-war era was the shift in the international monetary system from a fixed to a floating exchange rate regime in the early 1970s. The demise of the Bretton Woods (BW) system of fixed exchange rates was a milestone event that marked the end of a prolonged period of low inflation and strong economic growth in the major industrial countries. It was heralded by President Nixon’s decision to suspend convertibility between the U.S. dollar and gold at a fixed price of $35 per ounce in August of 1971. The announcement occurred as I was in route from graduate school at Stanford University to my first job at the U.S. Treasury Department, and I recall wondering “Why did he do it?” and “What does it mean?”