During the first half of the decade of 20, the exchange regimen age of relatively clean fluctuations (usually, the central bankings did not intervine in the exchange market), this because in the World War I the gold became if a resource essential to acquire in the exterior suppliments necessary to feed the warlike machine, before had free gold fluctuations. From this, the governments imposed norms (laws). The first norm is the prohibition of the gold exportations, disturbing, consequently, the process of arbitration in the gold market, thus the exchange taxes started to float. The second norm is that the governments had suspended the ballast in gold of the currencies.
They admitted currencies Fiat (paper currency without ballast) to finance the increase of the expenses of the government (welded more warlike equipment in the domestic market). The volume of currency emission Fiat and generated variations in the taxes of exchange of the diverse countries. Such exchange regimen lasted of 1920-1925. From then on the standard gold was reestablished, but if it supported only up to 1931. After the second half of the decade of 30, it invigorated the managed floating taxes of exchange in reason of the insatisfação with its performance in the previous decade.
Based in texts of: Eichengreen and Polanyi
