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    Gold standard and the Bretton Woods System

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    This problem describes the gold standard. It also gives a short desctiption of the relationship with the Bretton Woods System and finally gives some rellevant web references.

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    What is the gold standard?

    1. 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 1870-1914.
    2. A monetary system in which currencies are defined in terms of a given weight of gold
    3. A monetary system based on gold. The basic currency unit of a country is pegged to a specified amount of gold
    4. An international monetary system in which the value of a currency is fixed in terms of gold. A government whose currency is on the gold standard agrees to convert it to gold at a pre-established price. This creates a self-regulating mechanism for adjusting the balance of payments, since disequilibria can be remedied by inflows and outflows of gold.
    5. A monetary standard which defines the monetary unit of a country as consisting of a certain amount of gold. Every citizen could come to the Mint with a bar of gold and ask for currency (for example dollars) in exchange, at the legal price.
    6. A system of monetary organization whereby the value of a country's currency is legally defined and ...