gold standard金本位.pptVIP

Three types may be distinguished. Tips:History of the monetary system The Gold Standard , 1876-1913 Bretton Woods and the International Monetary Fund IMF ,1944 Fixed Exchange Rates , 1945-1973 An Eclectic Currency Arrangement , 1973-Present The Gold Standard First monetary system Gold Specie Standard Gold Exchange Standard Gold Bullion Standard In the gold specie standard the monetary unit is associated with the value of circulating gold coins or the monetary unit has the value of a certain circulating gold coin, but other coins may be made of less valuable metal. The gold exchange standard usually does not involve the circulation of gold coins. The main feature of the gold exchange standard is that the government guarantees a fixed exchange rate to the currency of another country that uses a gold standard, regardless of what type of notes or coins are used as a means of exchange. Finally, the gold bullion standard is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for currency. Disadvantages The unequal distribution of gold deposits makes the gold standard more advantageous for those countries that produce gold. The gold standard acts as a limit on economic growth. As an economys productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow. Advantages The gold standard provides fixed international exchange rates between participating countries and thus reduces uncertainty in international trade. Long-term price stability has been described as the great virtue of the gold standard.The gold standard makes it difficult for governments to inflate prices through expanding the money supply. Under the gold standard, significant inflation is rare, and hyperinflation is essentially impossible because the money su