International Gold Standard
The international gold standard was a monetary system that pegged the value of paper money to gold. Under this system, each country’s central bank would hold a certain amount of gold reserves and issue paper money backed by those reserves. This system was designed to maintain the stability of the value of money and prevent inflation.
The gold standard was first adopted in the United Kingdom in 1821. By the end of the 19th century, most major countries had adopted the gold standard. The gold standard helped to create a stable international monetary system and facilitated international trade.
However, the gold standard also had some disadvantages. One disadvantage was that it limited the ability of governments to pursue expansionary monetary policies. This was because governments could not issue more paper money than they had gold reserves to back it up. Another disadvantage was that the gold standard could lead to deflation. This was because as the supply of gold increased, the value of money would tend to fall.
The gold standard was abandoned in most countries during the early 20th century. The United States abandoned the gold standard in 1933, and the United Kingdom abandoned it in 1931. The world has since moved to a system of fiat currency, where the value of money is not backed by gold.
原创文章，作者：Kevin，如若转载，请注明出处：https://fangeou.com/2489.html
