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.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Statistically significant differences between men and women were observed for the proportion diagnosed with OA by each of the four reference standards except for RS3.
Accurate identification and quantification of the isomers of fatty acids need reference standards containing all the different isomers of the unsaturated fatty acids to confirm or eliminate the presence or formation of one or more of the fatty acid isomers.
(points) Validating studies test with good reference standards * 12 Exploratory cohort study with reference standards ** 9 Validating studies test with poor reference standards *** 6 Case control study poor or not-independent reference 4 standard Poor quality cohort studies *** 3 Case-series 1 Domain 2: Population studied x justification factor.
[[GAMMA].sub.Std] is the reflection coefficient of the reference standard,
Flow and timing was regarded to be at high risk of bias when there was too much time between the index test and the reference standard, when not all patients received the (same) reference standard, or when not all enrolled patients ended up in the 2 x 2 tables.
The Ge-trap detector was calibrated at both national laboratories against their reference standards. The same lasers, operating at wavelengths of 1302 nm and 1546 nm, and same optical fiber cable with fiber connectors with physical contact (FC/PC) were used by both laboratories, which employed a direct-substitution method for their measurements.
As noted earlier, all reference standard interventions for acute pancreatitis were found in the primary analysis.
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.e.
Student's t-test was used to compare temperatures obtained with each of the three test temperature devices (oral disposable, tympanic, temporal artery) and the reference standard temperature (oral electronic).
Test accuracy is assessed by comparing the results of the index test with the results of the reference standard in the same individuals.
The Symrise Genealogy of Fragrances is the classic of the fragrance industry--the uncontested reference standard that has become an indispensable part of a perfumer's everyday work.
The company also sells the EasySeed reference standard for Cryptosporidium and Giardia testing.

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