Originally Posted by dippin

Huh? The gold standard was in place until the 30s, and Bretton Woods put in place a system that was very similar to the gold standard, the main difference being that the US took the role of guaranteeing the whole system by making the dollar the intermediary between other currencies and gold. But from the inception of Bretton Woods until 1971 it was basically fixed that 1 ounce of gold=35 dollars.

And I fail to see where Keynesianism comes in in any of this.

The basic problem here had was made worse by monetary policy, but it was not caused by it. The cause was excessive leveraging using CBOs as collateral, and the risk on those CBOs was vastly underestimated by private credit rating agencies because of conflicts of interest.

Of course, nevermind that the Bretton Woods system is no more, that there is very little in today's economic policy that is truly Keynesian, and that during the height of keynesianism there were no crisis like this one...