Working Paper: NBER ID: w17749
Authors: Douglas A. Irwin
Abstract: On August 15, 1971, President Richard Nixon closed the gold window and imposed a 10 percent surcharge on all dutiable imports in an effort to force other countries to revalue their currencies against the dollar. The import surcharge was lifted four months later after the Smithsonian agreement led to new exchange rate parities. This paper examines the political, economic, and legal issues surrounding the import surcharge. This historical episode may shed light on the possible use of trade sanctions as part of the effort to get China to allow the renminbi to appreciate more rapidly.
Keywords: No keywords provided
JEL Codes: F13; F42; F5; N12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Nixon import surcharge (F18) | revaluation of foreign currencies (F31) |
| Nixon import surcharge (F18) | reduction in U.S. imports (F14) |
| revaluation of foreign currencies (F31) | improvement in U.S. balance of payments (F32) |
| Nixon import surcharge (F18) | pressures from domestic industries (L59) |
| Nixon import surcharge (F18) | international economic dynamics (F49) |