The dynamics of international monetary systems: international and domestic factors in the rise, reign, and demise of the classical gold standard*

In 1922, British colonial Gambia demonetized the French 5-franc coin, which had been legal tender at a fixed rate in the colony since 1843. Until World War I, this rate was close to the international rate under the gold standard. When the franc began to depreciate in 1918, however, a gap emerged between the Gambian rate and the international rate, prompting a rapid influx of the coins. The demonetization cost the colonial administration over a year's revenue, affecting the later development of the colony. The 1920s have long been a fruitful period for the study of monetary history owing to the instability of exchange rates during and after the war. This article extends the study of this period to examine the impact of these changes on dependent colonies in West Africa, highlighting the importance of local compromises and particularities in colonial monetary systems.

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Exploration of Gold Standard, Credit Currency and Digital Currency

Finance and Market ◽

10.18686/fm.v5i4.2962 ◽

2020 ◽

Vol 5 (4) ◽

pp. 316

Author(s):

Sirui He

Keyword(s):

Gold Standard ◽

Standard System ◽

New Era ◽

Development Status ◽

Digital Currency ◽

Monetary System ◽

Monetary Systems ◽

Currency Policy ◽

Effective Development

<p>In the perspective of present monetary system, the author proposes that we should analyze the comprehensive effectiveness with the combination of the former gold standard system and diversified monetary systems, such as the credit currency and the digital currency, which are highlighted in this new era, and confirm the more complete digital currency policy according to present development status so as to promote the healthier and more reasonable and effective development of the monetary funds. In this paper, the author launches research and exploration with the combination of gold standard, credit currency and digital currency.</p>

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In Defense of the Euro: Austrian School Approach (comment)

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-3-152-160 ◽

2013 ◽

pp. 152-160

Author(s):

A. Rakviashvili

Keyword(s):

Exchange Rates ◽

Gold Standard ◽

Austrian School ◽

Monetary System ◽

Fixed Exchange Rates ◽

Monetary Systems

The article critically analyzes theoretical arguments in favor of gold standard, the euro and fixed exchange rates that were set out in the article of H. Huerta de Soto ‘In Defense of the Euro: Austrian School Approach’ (Voprosy Ekonomiki. 2012. No 11). Monetary systems alternative to the gold standard are considered. It is shown that they are at least as much supported by liberal economists as the gold standard. The author emphasizes weakness of euro and gold standard and proves necessity of scaled reforms before the gold standard or alternative monetary system with the same characteristics may be implemented.

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The impact of monetary systems on income inequity and wealth distribution

International Journal of Emerging Markets ◽

10.1108/ijoem-06-2019-0473 ◽

2020 ◽

Vol 15 (6) ◽

pp. 1161-1183

Author(s):

Anwar Hasan Abdullah Othman ◽

Syed Musa Alhabshi ◽

Salina Kassim ◽

Adam Abdullah ◽

Razali Haron

Keyword(s):

Income Inequality ◽

Social Welfare ◽

Gold Standard ◽

Wealth Distribution ◽

Wealth Inequality ◽

Content Type ◽

Fiat Money ◽

Monetary System ◽

Monetary Systems ◽

Econometric Approach

PurposeThis study uses the autoregressive distributed lag model (ARDL) econometric approach to investigate empirically the effects of cryptocurrencies, the gold standard and traditional fiat money on global income inequality measured based on the Gini coefficient, and various ratios of income inequality distribution such as top 1 per cent, top 10 per cent, top 40 per cent and top 50 per cent.Design/methodology/approachThe study uses the ARDL econometric approach.FindingsThe findings indicated that cryptocurrency and gold standard monetary systems contributed significantly to reducing global inequality of income and wealth distribution. Conversely, the traditional fiat money system contributes positively to global income and wealth inequality while also contributing significantly to their fluctuation.Practical implicationsThis suggests that the fiat monetary system results in the coercive redistribution of income and wealth if governments pursue a social welfare policy. They must resolve this conflict between the current fiat monetary system and social policy by opting for an alternative monetary system such as cryptocurrency or gold standard. These alternative monetary systems offer the promise of resolving the income and wealth inequality associated with the traditional monetary system which are accompanied with the channels of inflation, lack of financial inclusion and debt creation, and to offer a more sustainable financial system.Originality/valueThe study recommends that monetary policy must be revisited to account for its direct effect on income and wealth redistribution to achieve social welfare goals.

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