Gold Standard
Summary of Gold Standard
A system under which a nation’s currency is freely convertible into gold. The quantity of gold per unit of currency is fixed by law. Most major trading nations, however, abandoned the gold standard because of the constraints it imposes upon liquidity, although some interest has been expressed in its revival for precisely that reason, i.e., to control expansionary monetary policies.
(Main Author: William J. Miller)
History of the Gold Standard
The following commentary about Gold Standard in the Churchill Era is produced by the Churchill College (Cambridge): The gold standard is a monetary system in which the value of a currency is defined in terms of gold. In 1925 Winston Churchill fixed at 4.80 dollars to the pound, a high rate that is now argued to have been damaging to British industry, as the pound became too strong for British exports, and general interest rates were also forced up.
Gold Standard in International Trade
Meaning of Gold Standard, according to the Dictionary of International Trade (Global Negotiator): A monetary agreement whereby all national currencies are backed 100% by gold and the gold is utilized for payment of foreign activity.
Concept of Gold Standard
An introductory definition of Gold Standard is provided here: the value of a currency is fixed relative to an amount of gold, can be converted to gold at a fixed rate (see also fixed exchange rates)
Resources
See Also
- Foregin Policy
- Foreign Affairs
Hierarchical Display of Gold standard
Finance > Monetary relations > International finance > International monetary system
Gold standard
Concept of Gold standard
See the dictionary definition of Gold standard.
Characteristics of Gold standard
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Resources
Translation of Gold standard
- Spanish: Patrón oro
- French: étalon-or
- German: Goldstandard
- Italian: Sistema monetario aureo
- Portuguese: Padrão-ouro
- Polish: System waluty złotej
Thesaurus of Gold standard
Finance > Monetary relations > International finance > International monetary system > Gold standard
See also
- Gold ingot standard
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