1) Gold Standard: The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard. First, the gold specie standard is a system in which the monetary unit is associated with circulating gold coins, or with the unit of value defined in terms of one particular circulating gold coin in conjunction with subsidiary coinage made from a lesser valuable metal. The gold standard as an international monetary system gained acceptance in Western Europe in the 1870s. The United States was something of a latecomer to the system, not officially adopting the standard until 1879. Several advantages are claimed for the gold standard, especially when it is adopted simultaneously by a number of countries, i.e., international gold standard which includes- i) It is an objective system and is not subject to the changing policies of the government or the whims of the currency authority ii) Gold standard enables the country to maintain the purchasing power of its currency over long periods. This is so because the currency and credit structure is ultimately based on gold in possession of the currency authority etc. But there were certain disadvantages of Gold Standard like- i) Gold standard is costly and the cost is unnecessary. We only want a medium of exchange, why should it be made of gold? It is a luxury.-The yellow metal could tickle the fancy of savages only ii) Even the value of gold has not been found to be absolutely stable over long periods etc. Finally, the gold standard broke down in country after country soon after its rehabilitation during the post-1914-18 war decade.
2) Bretton Woods System: The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to... [continues]
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(2011, 10). Exchange Rate Regimes and Euro Currency. StudyMode.com. Retrieved 10, 2011, from http://www.studymode.com/essays/Exchange-Rate-Regimes-And-Euro-Currency-796403.html
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"Exchange Rate Regimes and Euro Currency." StudyMode.com. 10, 2011. Accessed 10, 2011. http://www.studymode.com/essays/Exchange-Rate-Regimes-And-Euro-Currency-796403.html.