What step did FDR take to make the nation's financial system more stable?
1 Answer
He had the Glass-Steagall Act passed enacting between investment and commercial banking. He also got rid of the Gold Standard.
Explanation:
FDR is known as a reformer, his will to change his nation went far enough to drive change in the banking system. The Glass-Steagall Act was not repealed before 1999.
By getting rid of the Gold Standard, he applied the keynesian remey of getting rid of the "barbaric relic", he this believed that money creation should not be restrained. Inflation was not seen as a threat by him. Though FDR started his reforms before Keynes published his famous "general theory", he applied his solutions.
All these moves occurred in 1933. The Gold Standard was reintroduced by the Bretton Woods agreement in 1944 but no American citizen could claim gold in exchange for their dollars, unlike foreign nations who were given gold-backed dollars as a reserve currency.
