Gold Standard

The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. There are distinct kinds of "gold standards". First, the gold specie standard is a system in which the monetary unit is associated with circulating gold coins, or with the unit of value defined in terms of one particular circulating gold coin in conjunction with subsidiary coinage made from a less valuable metal.

Similarly, the gold exchange standard typically does not involve the circulation of gold coins. Rather, it uses notes or coins made of silver or other metals, but where the authorities guarantee a fixed exchange rate with another country that is on the gold standard. This creates a de facto gold standard, in that the value of the silver coins has a fixed external value in terms of gold that is independent of the inherent silver value. Finally, the gold bullion standard is a system in which gold coins do not circulate, but in which the authorities have agreed to sell gold bullion on demand at a fixed price in exchange for circulating currency.

No country currently uses the gold standard as the basis of its monetary system, although several hold substantial gold reserves.

Read more about Gold Standard:  Theory, Advocates of A Renewed Gold Standard, Gold As A Reserve Today

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Antal E. Fekete
... He is a proponent of the gold standard and critic of the current monetary system ... His support of the gold standard has similarities to Austrian Economics however, Fekete's treatment of fractional-reserve banking, capital or time preference theory of interest, real bills and ... In 2002 Fekete started the Gold Standard University on the Internet ...
Gold Standard - Gold As A Reserve Today
... The Swiss Franc was based on a 40% legal gold-reserve requirement from 1936, when it ended gold convertibility, until 2000 ... Gold reserves are held in significant quantity by many nations as a means of defending their currency, and hedging against the U.S ... Both gold coins and gold bars are traded in liquid markets and serve as a private store of wealth ...
Fixed Exchange-rate System - History - Chronology
... exchange rate system 1880–1914 Classical gold standard period April 1925 United Kingdom returns to gold standard October 1929 United States stock market crashes September 1931 United Kingdom abandons gold ...
Byzantine Studies - Structure - Numismatics
... Building on the gold standard of late antiquity, the Byzantine monetary system was, until the middle of the 14th century, based on a gold standard, and included silver, bronze, and copper coins ... the economic and political decline of the late period, the gold standard was abandoned in the final century of Byzantine history, and replaced by a silver-based ...
Timeline Of The Great Depression
... further depressed the economy until Roosevelt stepped into office in 1933 and ended the gold standard, thereby ending the deflationary policy ... monetary system but also the implications of the gold standard on its participatory nations ... The gold standard made the involved nations interdependent on each other's monetary policy ...

Famous quotes containing the words standard and/or gold:

    Any honest examination of the national life proves how far we are from the standard of human freedom with which we began. The recovery of this standard demands of everyone who loves this country a hard look at himself, for the greatest achievments must begin somewhere, and they always begin with the person. If we are not capable of this examination, we may yet become one of the most distinguished and monumental failures in the history of nations.
    James Baldwin (1924–1987)

    The majority of the men of the North, and of the South and East and West, are not men of principle. If they vote, they do not send men to Congress on errands of humanity; but while their brothers and sisters are being scourged and hung for loving liberty,... it is the mismanagement of wood and iron and stone and gold which concerns them.
    Henry David Thoreau (1817–1862)