Richard Nixon's 1971 suspension of dollar convertibility into gold—known as the Nixon Shock—ended the postwar monetary system and ranks among his most consequential economic decisions. While Watergate dominates public memory, this move fundamentally altered how the world trades and saves, severing the dollar's link to bullion and unleashing floating exchange rates.

The decision emerged from mounting pressure on the Bretton Woods framework, where foreign governments could exchange dollars for gold at $35 per ounce. Nixon prioritized domestic economic revival over maintaining alliances' financial stability, as Professor Jeffrey Garten details in his book on the Camp David meeting that preceded the shock.

Garten joins FT hosts Gillian Tett and Robin Wigglesworth to examine how this America First policy created today's monetary landscape. The shift gave the US greater control over its currency but also sparked recurring international tensions over dollar dominance.

The Nixon Shock demonstrates how unilateral economic decisions can reshape global markets for decades, with implications echoing through modern debates over reserve currency status and trade imbalances.