The gold standardrefers to a system in which countries peg currencies to gold and guarantee their convertibility
•the gold standard dates back to ancient times when gold coins were a medium of exchange, unit of account, and store of value
•payment for imports was made in gold or silver• later, payment was made in paper currency which was linked to gold at a fixed rate
• in the 1880s, most nations followed the gold standard •$1 = 23.22 grains of “fine” (pure) gold
• the gold par valuerefers to the amount of a currency needed to