A report on Gold standard
Monetary system in which the standard economic unit of account is based on a fixed quantity of gold.
- Gold standard67 related topics with Alpha
Bretton Woods system
11 linksThe Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement.
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western European countries, Australia, and Japan after the 1944 Bretton Woods Agreement.
The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold (or 0.88867 gram fine gold per dollar).
Silver standard
9 linksMonetary system in which the standard economic unit of account is a fixed weight of silver.
Monetary system in which the standard economic unit of account is a fixed weight of silver.
The move away from the silver to the gold standard began in the 18th century when Great Britain set the gold guinea’s price in silver higher than international prices, attracting gold and putting them on a de facto gold standard.
Central bank
9 linksInstitution that manages the currency and monetary policy of a state or formal monetary union,
Institution that manages the currency and monetary policy of a state or formal monetary union,
At the most basic level, monetary policy involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency (disallowed for countries in the International Monetary Fund), currency board or a currency union.
Pound sterling
9 linksOfficial currency of the United Kingdom and its associated territories.
Official currency of the United Kingdom and its associated territories.
But without addressing the problem of underweight silver coins, and with the high resulting gold-silver ratio of 15.2, it gave sterling a firmer footing in gold guineas rather than silver shillings, resulting in a de facto gold standard.
United States dollar
9 linksOfficial currency of the United States and several other countries.
Official currency of the United States and several other countries.
From implementation of the 1792 Mint Act to the 1900 implementation of the gold standard the dollar was on a bimetallic silver-and-gold standard, defined as either 371.25 grains (24.056 g) of fine silver or 24.75 grains of fine gold (gold-silver ratio 15).
John Maynard Keynes
9 linksEnglish economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.
English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.
Keynes advised it was no longer a net benefit for countries such as Britain to participate in the gold standard, as it ran counter to the need for domestic policy autonomy.
Bimetallism
6 linksMonetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them.
Monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them.
During the 19th century there was a great deal of scholarly debate and political controversy regarding the use of bimetallism in place of a gold or silver standard (monometallism).
Great Depression
6 linksSevere worldwide economic depression between 1929 and 1939 that began after a major fall in stock prices in the United States.
Severe worldwide economic depression between 1929 and 1939 that began after a major fall in stock prices in the United States.
One reason why the Federal Reserve did not act to limit the decline of the money supply was the gold standard.
Monetary policy
6 linksPolicy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency.
Policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency.
The establishment of national banks by industrializing nations was associated then with the desire to maintain the currency's relationship to the gold standard, and to trade in a narrow currency band with other gold-backed currencies.
Gold
4 linksChemical element with the symbol Au and atomic number 79, making it one of the higher atomic number elements that occur naturally.
Chemical element with the symbol Au and atomic number 79, making it one of the higher atomic number elements that occur naturally.
In the past, a gold standard was often implemented as a monetary policy.