The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. There are three distinct types of ‘gold standards’. The gold specie standard is a system in which the monetary unit is associated with the value of circulating gold coins or has the value of a certain circulating gold coin along with other coins made of less valuable metal. The gold exchange standard usually does not involve the circulation of gold coins. The main feature of the gold exchange standard is that the government guarantees a fixed exchange rate with another country that does use the gold standard, regardless of what type of notes or coins are used as a means of exchange. This creates a the fact gold standard, where the value of the means of exchange has a fixed external value in terms of gold that is independent of the inherent value of the means of exchange itself. Finally, the gold bullion standard is a system in which gold coins do not circulate, but the authorities agree to sell gold bullion on demand at a fixed price in exchange for circulating currency. No country currently uses the gold standard as the basis of its monetary system, although several hold substantial
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