Gold Standard: Difference between revisions
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== How the Gold Standard Works == | == How the Gold Standard Works == | ||
The gold standard was a commitment by participating countries to fix the prices of their domestic currencies in terms of a specified amount of gold. National money and other forms of money (bank deposits and notes) were freely converted into gold at the fixed price | |||
== Gold Standard History]] == | == Gold Standard History]] == | ||
Revision as of 19:55, 2 December 2006
Why Pick Gold As The Standard?
- First known metal. Valuable throughout the ages because of scarcity. High value for its beauty and resistance to corrosion and rust.
- Soft and easy to work with (very malleable and can be easily shaped into various forms). As a result, gold had long been used as a form of money and store of wealth by merchants and traders.
- Its versatility for many applications, such as jewelry and adornment. Means of payment of armies.
- Supplant silver as the basic unit of international trade at various times (Islamic Golden Age, peak of Italian trading during the Renaissance, during the 19th century).
- Remain the metal of monetary reserve accounting until the collapse of the Bretton Woods agreement in 1971.
How the Gold Standard Works
The gold standard was a commitment by participating countries to fix the prices of their domestic currencies in terms of a specified amount of gold. National money and other forms of money (bank deposits and notes) were freely converted into gold at the fixed price
Gold Standard History]]
Effect on the Great Depression
Bretton Woods Conference
International Gold Standard
Performance of Gold Standard
Pros and Cons of Gold Standard
Group: Minh, Dan, Nick
