Why was the Us government’s repeal (abrogation) of the Bretton Woods Agreement in 1971 so important for the globalization of the world economy in the years since?
The repeal of the Bretton Woods Agreement shifted away from a fixed exchange rate to a floating exchange rate. This made US dollar stronger and thus led to consumption and bump up in the US economy. This also started financialization where companies could operate on a national scale and trade started exploding. Also, there was an increase in net foreign investments.