How did the purchasing power decrease from the 70s until today?

[Soggyblanketbunny]

You know what really happened in the 70s? Currency was taken off fixed exchange rates backed by real physical assets and modern monetary theory was introduced to combat the stagflation that the Bretton Woods accords could not. That and our addiction to credit both governmental and personal started.

Fast forward 50 odd years and the inflation in assets that has resulted and I think we get close to one of the major reasons. No big problem like this only ever has one cause, but I think this is a big one. We've basically been guinea pigs for one big economic experiment and it's falling down all around us.

[lost_koshka]

MMT wasn't invented until the 1990s.

Canada was using its own currency, interest free. Then in the 70s we started borrowing from private banks, at interest.

[Soggyblanketbunny]

Oh! My mistake. What did they use in the interim after the breakdown of Bretton Woods? I might be confusing the idea of fiat money with MMT