How would that work exactly? Trade surplus is just an accounting balance. It’s the difference between what US importers paid for German goods and what German importers paid for US goods. The money went to the companies involved, how would it be used to buy gold for the German state?
It’s mostly a result of Bretton-Woods. Countries with a trade deficit had to pay those with a surplus -mostly in gold. And because shipping gold is expensive, that gold stayed in the USA. The German central bank had 24 tons in 1950 but 4000 tons by 1951.
How would that work exactly? Trade surplus is just an accounting balance. It’s the difference between what US importers paid for German goods and what German importers paid for US goods. The money went to the companies involved, how would it be used to buy gold for the German state?
It’s mostly a result of Bretton-Woods. Countries with a trade deficit had to pay those with a surplus -mostly in gold. And because shipping gold is expensive, that gold stayed in the USA. The German central bank had 24 tons in 1950 but 4000 tons by 1951.
Interesting, didn’t know that about Bretton-Woods (or probably forgot), thanks for the info!