IMF Second Amendment Implementation Act (End of Gold Standard)

IMF Second Amendment Implementation Act (1976)

1) Link to the Text of the Act
Read the statute (Pub. L. 94–564)

2) Why It Was Done
This Act ratified U.S. participation in the International Monetary Fund’s (IMF) Second Amendment, which followed the Jamaica Accords of 1976. It formally abandoned the gold standard, authorized floating exchange rates, and eliminated gold’s role in the international monetary system.

3) Pre-existing Law or Constitutional Rights
Prior to this Act, the Bretton Woods system still nominally tied the U.S. dollar to gold for foreign governments, even after President Nixon suspended convertibility in 1971. This law permanently severed that tie, ending the last statutory role for gold in U.S. currency.

4) Overreach or Proper Role?
Supporters argued it reflected economic reality — the U.S. could no longer back dollars with gold and needed flexibility in global finance. Critics claimed it was the ultimate monetary overreach, replacing “sound money” with fiat currency and fueling inflation.

5) Who or What It Controls

  • U.S. Treasury & President (authorized to participate in IMF’s new rules)
  • Federal Reserve (operates monetary policy under fiat currency regime)
  • International Monetary Fund (abolished gold-based exchange system)
  • World economy (shifted to floating exchange rates)

6) Key Sections / Citations

  • Pub. L. 94–564, Title II: U.S. adoption of IMF Second Amendment
  • Amendments to Bretton Woods Agreements Act (22 U.S.C. §§ 286–286mm)
  • Authorized U.S. contributions to IMF under new fiat regime

7) Recent Changes or Live Controversies

  • This Act is still cited as the legal end of the gold standard.
  • Sparked ongoing debate between advocates of fiat money vs. gold-backed currency.
  • Gold remains a reserve asset, but only as a commodity, not as official money.

8) Official Sources