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Great Britain goes back to gold standard

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system. Many states nonetheless hold substantial gold reserves.

Historically, the silver standard and bimetallism have been more common than the gold standard. The shift to an international monetary system based on a gold standard reflected accident, network externalities, and path dependence.

Historical Significance

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

Events Before

  1. Charlie Munger is born

    Charlie Munger, American businessman, known for american businessman, was born on 1924-01-01.

  2. Grossdeutsche Volksgemeinschaft and Völkische Block replace the banned NSDAP

    Grossdeutsche Volksgemeinschaft and Völkische Block replace the banned NSDAP

  3. German-Swiss poet and novelist Hermann Hesse (36) weds Swiss soprano and painter Ruth Wenger (26); divorce in 1927

    German-Swiss poet and novelist Hermann Hesse (36) weds Swiss soprano and painter Ruth Wenger (26); divorce in 1927

  4. 1st Winter Olympic Games open in Chamonix, France

    The 1924 Winter Olympics, officially known as the I Olympic Winter Games (French: Iers Jeux olympiques d'hiver) and commonly known as Chamonix 1924 (Arpitan: Chamôni 1924), were a winter multi-sport...

  5. Vladimir Lenin is placed in a Mausoleum in Red Square, Moscow

    On Monday, 21 January 1924, at 18:50 EET, Vladimir Lenin, leader of the October Revolution and the first leader and founder of the Soviet Union, died in Gorki aged 53 after falling into a coma.

Events After

  1. A major flood on the Rhine River strikes Cologne

    Cologne is the fourth-most populous city of Germany and the largest city of the German state of North Rhine-Westphalia with nearly 1.1 million inhabitants in the city proper and over 3.1 million...

  2. American songwriter Irving Berlin (37) weds heiress and writer Ellin Mackay (23) in a simple civil ceremony in NYC, unti

    American songwriter Irving Berlin (37) weds heiress and writer Ellin Mackay (23) in a simple civil ceremony in NYC, until her death in 1988

  3. Abdulaziz Ibn Saud becomes King of Nejd and Hejaz, forerunner of the Kingdom of Saudi Arabia

    Abdulaziz Ibn Saud becomes King of Nejd and Hejaz, forerunner of the Kingdom of Saudi Arabia

  4. American comedian George Burns (28) weds American comedienne Gracie Allen (31), until her death in 1964

    American comedian George Burns (28) weds American comedienne Gracie Allen (31), until her death in 1964

  5. John Logie Baird gives the first public demonstration of television in his laboratory in London

    John Logie Baird gives the first public demonstration of television in his laboratory in London

More from the 1920s

birth

Isaac Asimov is born

Isaac Asimov, American writer and biochemist, known for american writer and biochemist, was born on 1920-01-02.

birth

Charlie Munger is born

Charlie Munger, American businessman, known for american businessman, was born on 1924-01-01.

birth

Vernon L. Smith is born

Vernon L. Smith, American economist and nobel laureate, known for american economist and nobel laureate, was born on 1927-01-01.

Byelorussian Communist Organization is founded as a separate party

The Byelorussian Communist Organisation was a communist group in Belarus, led by Usievalad Ihnatoŭski.

Frequently Asked Questions

What happened on April 3, 1925?
A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system. Many states nonetheless hold substantial gold reserves.
Why is Great Britain goes back to gold standard significant?
A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold.

Explore More

April 3 in HistoryYear 1925