The gold standard system is the gold standard system, which is a monetary system with gold as the bookkeeping base currency. Under the gold standard, the monetary value of each unit is equivalent to a certain weight of gold (that is, the monetary gold content); When different countries use the gold standard, the exchange rate between countries is determined by the ratio of the gold content of their respective currencies-the unified price of gold. The gold standard became popular in the middle of19th century. There are three forms of gold standard in history: gold coin standard, gold nugget standard and gold exchange standard. Among them, the gold coin standard system is the most typical form. The narrow sense of the gold standard refers to this monetary system.

1. Introduction of Paper Currency Standard System

The paper money standard system is also called "free standard system". A monetary system in which paper money issued by the state is the standard currency. Its characteristic is that the state does not stipulate the gold content of paper money, nor does it allow paper money to be exchanged with gold (silver). As the main currency in circulation, paper money has unlimited legal compensation ability; At the same time, the state also issued a small amount of metal coins as secondary coins, but the value of secondary coins has nothing to do with the value of metal commodities used to cast them. Since issuing paper money is the privilege of the state, after the nationalization of the central bank, the state entrusted the central bank to issue paper money. The central bank issues paper money through credit procedures, so paper money is actually a credit currency. The gold standard system is the gold standard system, and it is a monetary system with gold as the bookkeeping base currency. Under the gold standard, the monetary value of each unit is equivalent to a certain weight of gold (that is, the monetary gold content); When different countries use the gold standard, the exchange rate between countries is determined by the ratio of the gold content of their respective currencies-Mint Parity. The gold standard became popular in the middle of19th century. Historically, the gold standard has three forms: gold coin standard, gold bar standard and gold exchange standard. Among them, the gold coin standard system is the most typical form. The narrow sense of the gold standard refers to this monetary system.

Second, the birth of the American gold standard:

The American gold standard is 1944. After the understanding between the United States and Britain and the participation of 44 countries, the Bretton Woods Agreement was signed, and the US dollar assumed the obligation to exchange official gold, thus achieving international monetary stability and implementing a fixed exchange rate system. It happened at this time, which is far from now. The dollar depreciated 1973, and Europe sold a lot of dollars to buy gold. Since then, the American gold standard has become history and a floating exchange rate. At this time, the foreign exchange market really took shape.