The Gold Standard and the Modern Standard for Foreign Exchange Descriptive Essay by Nicky

The Gold Standard and the Modern Standard for Foreign Exchange
This paper is a brief history of the use of the gold standard in the foreign exchange market.
# 147960 | 1,202 words | 2 sources | MLA | 2011 | US


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Description:

The paper begins by discussing the adoption of the gold standard in England in 1717. It then traces the usage of this standard in world economic markets through to the present time, looking at the stability it provided but also at the weaknesses of this system. It then discusses the replacement of this standard by the foreign exchange system which is currently in place, in which currencies are backed only by the implied power of a nation's economy.

From the Paper:

"The rise of the modern currency market essentially began with Bretton Woods, which began the end of the gold standard. The gold standard was officially eliminated which Bretton Woods ended. For the entire industrial age, the gold standard was the main determinant of currency value. The gold standard was adopted de facto in England in 1717, and most nations followed suit to some degree. The gold standard functioned by fixing the value of the nation's currency to the value of gold. As the value of gold fluctuated, so too did the value of the nation's currency. The gold standard was officially adopted in England in 1819. The United States began life under de facto gold standard, though it was officially bimetallic (the other being silver). Gold standard was officially adopted in the US in 1900 as a result of the Gold Standard Act. (Bordo, no date)."

Sample of Sources Used:

  • Bordo, Michael D. (no date). The Gold Standard. Concise Encyclopedia of Economics. Retrieved April 11, 2009 from http://www.econlib.org/library/Enc/GoldStandard.html
  • Cohen, Benjamin. (no date). Bretton Woods System. University of California at Santa Barbara Retrieved April 11, 2009 from http://www.polsci.ucsb.edu/faculty/cohen/inpress/bretton.html

Cite this Descriptive Essay:

APA Format

The Gold Standard and the Modern Standard for Foreign Exchange (2011, August 15) Retrieved August 10, 2022, from https://www.academon.com/descriptive-essay/the-gold-standard-and-the-modern-standard-for-foreign-exchange-147960/

MLA Format

"The Gold Standard and the Modern Standard for Foreign Exchange" 15 August 2011. Web. 10 August. 2022. <https://www.academon.com/descriptive-essay/the-gold-standard-and-the-modern-standard-for-foreign-exchange-147960/>

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