{"id":372614,"date":"2020-01-14T09:11:12","date_gmt":"2020-01-14T09:11:12","guid":{"rendered":"https:\/\/4dreams.es\/what-was-the-gold-standard-and-what-was-it-used-for\/"},"modified":"2024-06-28T09:32:55","modified_gmt":"2024-06-28T09:32:55","slug":"what-was-the-gold-standard-and-what-was-it-used-for","status":"publish","type":"post","link":"https:\/\/4dreams.es\/en\/what-was-the-gold-standard-and-what-was-it-used-for\/","title":{"rendered":"What was the gold standard and what was it used for?"},"content":{"rendered":"\n<script type=\"application\/ld+json\">{\n\"@context\": \"https:\/\/schema.org\",\n\"@type\": \"BreadcrumbList\",\n\"itemListElement\": [{\n\"@type\": \"ListItem\",\n\"position\": 1,\n\"name\": \"4dreams compra y vende tus joyas\",\n\"item\": \"http:\/\/4dreams.es\/\"\n},{\n\"@type\": \"ListItem\",\n\"position\": 2,\n\"name\": \"Patron oro\",\n\"item\": \"http:\/\/4dreams.es\/que-era-el-patron-oro-y-para-que-se-usaba\/\"\n}]\n}\n<\/script>\n\n<p class=\"wp-block-paragraph\">The words <strong>gold standard<\/strong> sound familiar to most, if not all, people. And although we do not have full knowledge, it has had consequences in Western life for several decades. For what reason? Because for several decades it was the one used to establish the price of the currencies of countries by their equivalence with a certain amount of gold.<br\/><\/p>\n\n<p class=\"wp-block-paragraph\">Although the world has changed a lot, it is worth remembering what we are talking about when we refer to the gold standard. What was its origin, who established it, what it consisted of and when it came to an end.<br\/><\/p>\n\n<p class=\"wp-block-paragraph\">Do you want to know the details? Below is a summary of his life. As you will see, linked from beginning to end with wars.<br\/><\/p>\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/4dreams.es\/en\/what-was-the-gold-standard-and-what-was-it-used-for\/#The_Origin_of_the_Gold_Standard_World_War_II_and_the_Bretton_Woods_Agreements\" >The Origin of the Gold Standard: World War II and the Bretton Woods Agreements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/4dreams.es\/en\/what-was-the-gold-standard-and-what-was-it-used-for\/#Its_end_the_Vietnam_War_and_the_devaluation_of_the_dollar\" >Its end: the Vietnam War and the devaluation of the dollar<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/4dreams.es\/en\/what-was-the-gold-standard-and-what-was-it-used-for\/#Will_this_pattern_be_re-established\" >Will this pattern be re-established?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Origin_of_the_Gold_Standard_World_War_II_and_the_Bretton_Woods_Agreements\"><\/span>The Origin of the Gold Standard: World War II and the Bretton Woods Agreements<br\/><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">The world changed radically with World War II. Although it began to do so a year before the end of the conflict. Specifically, in July 1944, when more than 40 representatives of nations from all over the world met in Bretton Woods (United States). At this meeting, sponsored by the United States, presided over by Franklin Delano Roosevelt, the so-called <strong>Bretton Woods Agreements<\/strong> were reached.<br\/><\/p>\n\n<ul class=\"wp-block-list\"><li><strong>What was the purpose of the meeting?<\/strong>: to establish a new economic order that would prevent consequences such as those that occurred after the Great War (1914-1918), which gave rise to World War II. They wanted to achieve stability in commercial transactions with an exchange rate characterized by stability.<\/li><li><strong>Who were the leaders who met?<\/strong>: among others, the Secretary of the Treasury of the United States, Henry Morgenthau Jr; the English economist John Maynard Keynes representing the United Kingdom; or the French politician Pierre Mend\u00e8s France, who would later become prime minister of France.<\/li><\/ul>\n\n<p class=\"wp-block-paragraph\">The Bretton Woods Agreements ended with several important decisions. the <strong>establishment of the gold standard<\/strong> as a stabilizing element. The United States&#8217; commitment that the price of gold would be $35 an ounce. Or the <strong>creation of the International Monetary Fund (IMF),<\/strong> among others.<br\/><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Its_end_the_Vietnam_War_and_the_devaluation_of_the_dollar\"><\/span>Its end: the Vietnam War and the devaluation of the dollar<br\/><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">The gold standard resulting from the Bretton Woods Agreements was in force until the 1970s. One war motivated its beginning and another its end. Specifically, the Vietnam War (1965-1975). And just as in Bretton Woods, the United States, with Richard Nixon as president, took the initiative, but to end this pattern.<br\/><\/p>\n\n<p class=\"wp-block-paragraph\">Why did Nixon decide to do away with one of the pillars of Bretton Woods? Due to the expenses occasioned by the Vietnam War. This war forced the country to print billions of dollars, which led to the devaluation of this currency.  <br\/><\/p>\n\n<p class=\"wp-block-paragraph\">Some countries such as the United Kingdom and France demanded that dollars be converted into gold, causing a depletion of U.S. gold reserves. The final consequence of this situation? <strong>Nixon intervened, repealed part of the Bretton Woods Agreements and ended the gold standard<\/strong>.<br\/><\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Will_this_pattern_be_re-established\"><\/span>Will this pattern be re-established?<br\/><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p class=\"wp-block-paragraph\">After Nixon&#8217;s decision in 1971 there have been several attempts to re-establish this pattern. But none have borne fruit. One of them, perhaps the one that came closest, in 1984. With Ronald Reagan as president of the United States, his presidential adviser Jack Kemp passed the Gold Standard Act of 1984.<br\/><\/p>\n\n<p class=\"wp-block-paragraph\">What was the objective of this initiative? First, the United States should return to the gold standard. And measures such as that any U.S. citizen could exchange both coins and Treasury bills in gold coins or bars at any branch of its Federal Reserve.<br\/><\/p>\n\n<p class=\"wp-block-paragraph\">The rise and fall of the standard of measuring the value of gold-based currencies has been linked to the initiatives of U.S. presidents. It is worth considering whether it will be restored at some point in the future.<br\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The words gold standard sound familiar to most, if not all, people. And although we do not have full knowledge, it has had consequences in Western life for several decades. For what reason? Because for several decades it was the one used to establish the price of the currencies of countries by their equivalence with [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":370501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"categories":[125],"tags":[],"class_list":["post-372614","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gold-silver-platinum"],"acf":[],"_links":{"self":[{"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/posts\/372614","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/comments?post=372614"}],"version-history":[{"count":1,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/posts\/372614\/revisions"}],"predecessor-version":[{"id":372615,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/posts\/372614\/revisions\/372615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/media\/370501"}],"wp:attachment":[{"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/media?parent=372614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/categories?post=372614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/4dreams.es\/en\/wp-json\/wp\/v2\/tags?post=372614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}