A monetary system that sets the value of the currency unit in terms of a certain amount of gold. The issuer of the currency guarantees that it can give to the holder of its bills the amount of gold stated on them. Through its relationship with gold, currencies were exchanged stably, which favored international trade. Historically, the gold standard prevailed during the 19th century as the basis of the international financial system. Starting from the Great Depression, it gradually lost importance until it was definitively abandoned in 1971.
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