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What Is the Gold Standard?

By Jeremy Bowman – Dec 12, 2024 at 2:29PM

Key Points

  • The gold standard fixed currency value to a set gold amount, limiting inflation by tying the money supply to gold reserves.
  • The U.S. abandoned the gold standard in 1971 under Nixon, shifting to fiat money to afford more financial flexibility.
  • No current national currency uses the gold standard, allowing floating exchange rates and central bank control over money.
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