What is the gold standard? What replaced the gold standard?

The gold standard is a monetary system with ** as the standard currency.

Under the gold standard, ** has all the functions of money, including the measure of value, the means of circulation, the means of storage, the means of payment, and the world currency. Until the 70s of the 19th century, some major countries in Europe and the Americas successively implemented the gold standard in their countries.

The currency reserves of each country are **, which are also used in international settlements, which can be freely exported or imported, and when there is a deficit in the international **, it can be paid with **. When different countries use the gold standard, the exchange rate between countries is determined by the ratio of the gold content of their respective currencies - gold parity.

The gold standard has three characteristics: free casting, free exchange, free input and output: with the formation of the gold standard, it has assumed the general equivalent of commodity exchange and become the medium in the process of commodity exchange, and the gold standard is the peak of the performance of monetary attributes.

The gold standard system is a system with ** as the standard currency, which uses ** as the standard of value and the main means of payment.

Britain was the first to implement the gold standard in 1821. After the 70s of the 19th century, major capitalist countries such as Europe and the United States and Japan followed suit, and the gold standard changed from a one-country system to an international system. There are three types of gold standard:

Gold coin standard, bullion standard, gold exchange standard.

The gold standard was replaced by a credit-money system. The reason why the gold standard was replaced was because the production rate of goods was much slower than that of commodities, and it could no longer meet people's material needs; The second is that the reserves of ** in all countries of the world, are different, ** most of them are by the world powers.

occupiers, such a great measure weakens the currency circulation of other countries; In World War I.

At the time of the outbreak, ** was used by the participating countries to purchase a large number of arms and equipment, etc., which gradually led to the gold standard.

degree crash. Extended Resources:

1. The gold standard.

The gold standard is the gold standard, and the gold standard is a monetary system with ** as the standard currency. Under the gold standard, the monetary value of each unit was equal to a certain weight of the ear of land** (i.e. the gold content of the currency); When different countries use the gold standard, the exchange rate between countries is determined by the ratio of the gold content of their respective currencies - gold parity. The gold standard began to prevail in the mid-19th century.

Historically, there have been three forms of the gold standard: the gold coin, the bullion standard, and the gold exchange standard. Among them, the gold coin standard.

The most typical form is, in a narrow sense, the gold standard refers to the monetary system.

2. The reasons for the collapse of the gold standard.

The increase in commodity production exceeds the growth rate of production itself, and it can no longer meet the needs of commodity circulation, which greatly reduces the circulation rate of gold coinage;

At the beginning of the 20th century, the world's major powers accounted for most of the world's total reserves, which affected the minting of gold coins and the circulation of gold coins to varying degrees;

During the outbreak of World War I, the participating countries used ** to purchase military equipment and also stopped the free export of ** and the cashing of bank bills, which greatly affected the gold standard.

3. The significance of the gold standard.

The gold standard is a stable monetary system. The free exercise of the function of world currency has promoted the development of commodity production in various countries and the expansion of international affairs, and promoted capitalism.

The development of credit undertakings has also promoted the export of capital. The gold standard automatically adjusted the balance of payments and promoted the prosperity and development of the world economy during the rising stage of capitalism. Under the gold standard, the exchange rate is fixed, which eliminates the uncertainty of exchange rate fluctuations and benefits the world**.

the proceeds of the process; Central banks.

There is a fixed ****.

Thus the real value of the currency is stable; No country has a privileged position.

4. Silver standard.

The silver standard refers to a monetary system with ** as the standard currency. In the evolution of the monetary system, the silver standard predates the gold standard. The silver standard works similarly to the gold standard, with the main difference being that ** is used as the standard currency.

Silver coins have unlimited solvency, and their nominal value is consistent with the actual value of the ** they contain. The silver standard was divided into two silver standards and a silver coin standard.

The gold standard is in the early days, the transaction of various countries is the only standard to measure the wealth of a country, and later paper money was printed, and the value of each country's currency depends on all the amount, that is, you have a ton, no matter how much money you print, its purchasing power is only a ton, the gold standard means, as the standard anchor for calculating the value, of course, the era of the gold standard passed after the Brinton Woods system, the dollar was pegged, and the dollar gradually became the world currency.

Ever heard of dollars? That is the representative of the gold standard, and the paper money issued is pegged to **, which means that one dollar can be exchanged for **, which can prevent the currency from depreciating.

1. From the perspective of the evolution of the monetary system, the typical gold standard is due to the law that bad money drives out good money, and it is also related to the increase in production after the 19th century. The most typical feature of the gold standard is that gold coinage is stipulated to be the standard currency, which can be freely minted and melted freely.

Other currencies in circulation can be freely converted into gold coins, and can be freely exported and exported internationally.

2. Because the value of the world is relatively stable, it has promoted the development of the commodity economy of various countries and the international market. **Due to the limited production and limited reserves, it is not possible to fully meet the requirements of the ever-expanding commodity circulation for the means of circulation. The gold standard prevailed for a century, and it was only after the First World War that it began to be weakened.

After the typical gold standard was weakened, the bullion standard was gradually introduced.

3. The characteristics of the gold bullion standard are: the minting of gold coins is stopped, and gold coins are no longer in circulation, and the banknotes issued by ** banks are in circulation. The issuance of banknotes is prepared with gold bars.

The value of a currency remains equivalent to **. Other currencies that people hold cannot be exchanged for gold coins, but they can be exchanged for gold bullion. ** It can be freely exported and imported internationally, and banknotes can be exchanged for gold bars, but they are no longer freely convertible, and the prescribed exchange limit is larger.

4. Therefore, this system is also called the rich people's standard. Some countries have switched to the gold exchange standard. Its main features are largely the same as those of the bullion standard.

However, other currencies held by people cannot be exchanged in China, but can only be exchanged for foreign currencies linked to **. The essence of this system is to deposit the country's money in foreign banks in exchange for foreign currency. Foreign currencies are used as reserves for the issuance of domestic banknotes.

5. Domestic residents can buy foreign exchange, and theoretically can take foreign exchange abroad in exchange. This system is also known as the virtual gold standard.

The international gold standard system is an international monetary system that uses ** as the international reserve currency or international standard currency. The world's first international monetary system is the international gold standard, which has three main forms:

1. Gold coin standard. This was the earliest form of the gold standard monetary system, also known as the classical or pure gold standard, which prevailed between 1880 and 1914. Free minting, free convertibility and free import and export are the three major characteristics of the monetary system.

Under this system, each country stipulates the gold content of the currency in the form of law, and the comparison of the gold content of the currency between the two countries is the coinage parity that determines the basis of the exchange rate;

2. Keep an eye on the gold bar standard. This is a disguised gold standard that uses gold bars for international settlements, also known as the gold bar standard. Under this system, gold nuggets are stored by the state as reserves.

The exchange relationship between various currencies in circulation and ** is restricted, and free convertibility is no longer implemented, but when necessary, the amount of paper money can be exchanged for gold bullion in the specified restricted amount to the ** bank of the country;

3. Gold exchange standard. It is a gold standard in which foreign exchange is maintained in countries with a bullion standard or gold coin standard, and the national currency is allowed to be exchanged for foreign exchange without restrictions. Under this system, only bank bills are circulated in China, bank bills cannot be exchanged, only Kailing can be exchanged for the currency of countries that implement the gold bar or gold standard, and international reserves have a certain proportion of foreign exchange in addition to **.

Further information: The international gold standard was formed around the end of 1880 and ended in 1914 with the outbreak of World War I. Under the gold standard, ** has all the functions of money, that is, the measure of value, the means of circulation, the means of storage, the means of payment, and the world currency.

Britain, as the world's first developed capitalist country, adopted the gold standard around 1821. In the 70s of the 19th century, some major countries in Europe and the Americas successively implemented the gold standard system in their countries, and the international gold standard system was roughly formed.