Gold Standard

Gold Standard is a fiscal system in which a predetermined weight of gold is a standard numerical unit of measurement. Due to high durability and malleability, gold came to be used as a standard unit of measurement.Governments that employed such a standard shared a ‘fixed-currency relationship’ with other Governments.Many contradictions prevail regarding the correct phase of adoption of the Gold standard. Historically, Germany adopted this system in 1871 as an aftermath of the Franco-Prussian War. Gradually this was followed by other countries also such as the USA, France, Spain, India, Austria, Russia and many more. This resulted in the international establishment of the gold standard.