gold standard

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Gold standard

An international monetary system in which currencies are defined in terms of their gold content, and payment imbalances between countries are settled in gold. It was in effect from about 1870 to 1914.

Gold Standard

A system whereby a currency is linked to the value of gold. That is, one would be able to exchange one unit of the currency for so many ounces of gold on demand. The gold standard makes monetary policy independent from policymaker decisions. Many currencies have been linked to gold over the years, most recently under the Bretton Woods System. The gold standard reduces the likelihood of inflation, but tends to cause higher interest rates and renders a country less able to pursue full employment. The gold standard contrasts with fiat money. See also: Cross of Gold, Silver Standard.

gold standard

A monetary system under which a country's money is defined in terms of gold and convertible into a fixed quantity of gold. A gold standard effectively takes monetary policy out of the hands of government policymakers. While use of the gold standard reduces the likelihood of inflation, the accompanying inability to pursue other economic goals, such as full employment or reduced interest rates, has resulted in the gold standard's fall from favor.

Gold standard.

The gold standard is a monetary system that measures the relative value of a currency against a specific amount of gold.

It was developed in England in the early 18th century when the scientist Sir Isaac Newton was Master of the English Mint. By the late 19th century, the gold standard was used throughout the world.

The United States was on the gold standard until 1971, when it stopped redeeming its paper currency for gold.

gold standard

an INTERNATIONAL MONETARY SYSTEM in which GOLD forms the basis of countries’ domestic MONEY SUPPLY and is used to finance INTERNATIONAL TRADE and BALANCE OF PAYMENTS deficits.

Under the gold standard, EXCHANGE RATES were rigidly fixed in terms of gold. (The gold standard was widely adopted in the 19th century and operated down to the early 1930s.) In theory, the gold standard provided an automatic ADJUSTMENT MECHANISM for eliminating payments imbalances between countries: deficits were financed by outward gold transfers that reduced the domestic MONEY SUPPLY. This in turn deflated (see DEFLATION) the domestic price level, making IMPORTS relatively more expensive and EXPORTS relatively cheaper, thereby reducing the volume of imports and increasing the volume of exports. Surpluses were financed by inward gold transfers, which increased the domestic money supply. This in turn inflated (see INFLATION) the domestic price level, making imports relatively cheaper and exports relatively more expensive, resulting in a fall in the volume of exports and an increase in the volume of imports. In this way, both deficits and surpluses were removed and BALANCE OF PAYMENTS EQUILIBRIUM restored. In practice, however, countries found that a combination of rigidly fixed exchange rates and the complete subordination of domestic economic policy to the external situation was too onerous and opted for more flexible arrangements. See FIXED EXCHANGE RATE SYSTEM, INTERNATIONAL MONETARY FUND.

References in periodicals archive ?
The Ge-trap detector was calibrated at both national laboratories against their reference standards.
LFSB will continue with the extensive research of new roughness reference standards through measurements of groove depths and 2D and 3D roughness parameters within a comparisons that will involve a large number of measuring devices i.
Misclassification of the target condition by the reference standard will tend to result in underestimation of the accuracy of the index test.
3] (the plus sign for both relative differences indicates that the NIM reference standard read lower than NIST's).
1) determined the methodologic quality of the included studies, found that all were free from verification bias, that two had enrolled patients with less than ideal spectrum of disease, and that two had not optimally blinded the individual judging the reference standard.
Louis, MO) was snap-frozen in liquid nitrogen and stored at -80[degrees]C until protein extraction for use as reference standards in the Western blots.
Rotary meters have the potential to be an excellent reference standard due to their stability and independence of pressure, temperature and gas composition effects.
Reference Standard 6-1 is intended to provide the minimum requirements for photoluminescent exit path markings that will aid in the evacuation from buildings in the event of failure of both the power and backup power to the lighting and illuminated exit signs.
Although a positive angiogram or autopsy is considered the reference standard for the diagnosis of PE, we considered any one of the following as acceptable surrogate reference standards: (a) high probability ventilation-perfusion scan, (b) computed tomography scan positive for PE, or (c) positive lower extremity imaging study (ultrasound, impedance plethysmography, venogram, or computed tomography venogram).
As a reference standard for high-end video, HQV's video processor complements Toshiba's HD-XA2 HD DVD player with the capability to produce amazing detail and clarity from high-definition (HD) material," said Jodi Sally, Vice President of Marketing, Toshiba America Consumer Products Digital A/V Group.
Effective July 1, 2006 all commercial buildings (occupancy group E--high rise) will be required to have exit path markings conforming to a newly formed Reference Standard 6-1.
the Ge-trap detector was calibrated first at NIST against the NIST reference standard, then at PTB against the PTB reference standard, and then again at NIST.

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