In practice, actual flows of gold were not the only, or even necessarily
the most important, means of settling international debts during this
period. Since London was the financial center of the world, and England
the world’s leading trader and source of financial capital, the pound also
served as a world money. International trade was commonly priced in
pounds, and trade that never passed through England was often paid for
with pounds.
In practice, actual flows of gold were not the only, or even necessarilythe most important, means of settling international debts during thisperiod. Since London was the financial center of the world, and Englandthe world’s leading trader and source of financial capital, the pound alsoserved as a world money. International trade was commonly priced inpounds, and trade that never passed through England was often paid forwith pounds.
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