Gold Standard Systems Gold Specie Standard Actual Use of Gold
Coins
Slide 12
Gold Specie Standard Actual Use of Gold Coins Advantages People
are using real value No certification required Exchange Rate is
simple and stable =
Slide 13
Gold Specie Standard Actual Use of Gold Coins Limitations
Larger Space requirement for stocking Inconvenient to Carry Risk of
Theft
Slide 14
Gold Specie Standard
Slide 15
Slide 16
Gold Bullion Standard
Slide 17
Currency is pegged with Gold with a specified quantity
Pegged
Slide 18
Gold Bullion Standard Unconditional Promise to convert Fiat
Currency to Gold Pegged
Slide 19
Gold Bullion Standard Advantages Controlled Money Supply Anti
Inflationary Exchange Rate is simple and stable Carries advantages
of Divisibility, Stocking of credits and easier pricing Pegged
Slide 20
Gold Bullion Standard Disadvantages Inflationary measures are
not possible, and hence full employment and growth objectives are
not achieved Difficult to honor unconditional promise in war and
crisis Pegged
Slide 21
Gold Exchange Standard Currency in Gold Exchange Standard is
pegged with another currency with specified equation [Currency B]
That another Currency is pegged with gold [Currency A] Currency B
is in Gold exchange standard Currency A is in Gold Bullion Standard
Currency B Pegged Currency A
Slide 22
Gold Standard Systems Gold Bullion Standard Paper (Fiat)
Currency Pegged with Gold Gold Exchange Standard Paper (Fiat)
Currency pegged with another currency which in turn is pegged with
Gold Gold Specie Standard `Actual Use of Gold Coins