International Gold Standard

The International Gold Standard was a monetary system where countries fixed their currencies' value directly to a specific amount of gold. This meant that the exchange rates between different countries' currencies remained stable because each country's money could be exchanged for gold at a set rate. It facilitated international trade and finance by reducing currency fluctuations and promoting trust. Countries adopted the gold standard in the 19th and early 20th centuries but gradually moved away from it during the 20th century, especially after World War II, as economies became more flexible with different monetary policies.