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.
Sir Robert Peel, 2nd Baronet,, was a British Conservative statesman who twice was Prime Minister of the United Kingdom, and simultaneously was Chancellor of the Exchequer (1834–1835). He previously was Home Secretary twice. He is regarded as the father of modern British policing, owing to his founding of the Metropolitan Police Service while he was Home Secretary. Peel was one of the founders of the modern Conservative Party.
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time, but deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation, a slowdown in the inflation rate; i.e., when inflation declines to a lower rate but is still positive.
The Specie Payment Resumption Act of January 14, 1875 was a law in the United States that restored the nation to the gold standard through the redemption of previously unbacked United States Notes and reversed inflationary government policies promoted directly after the American Civil War. The decision further contracted the nation's money supply and was seen by critics as an exacerbating factor of the so-called Long Depression, which struck in 1873.
The Panic of 1819 was the first widespread and durable financial crisis in the United States that slowed westward expansion in the Cotton Belt and was followed by a general collapse of the American economy that persisted through 1821. The Panic heralded the transition of the nation from its colonial commercial status with Europe toward an independent economy.
The Greenback Party was an American political party with an anti-monopoly ideology which was active from 1874 to 1889. The party ran candidates in three presidential elections, in 1876, 1880 and 1884, before it faded away.
Bimetallism, also known as the bimetallic standard, is a monetary standard in which the value of the monetary unit is defined as equivalent to certain quantities of two metals, typically gold and silver, creating a fixed rate of exchange between them.
John Scott, 1st Earl of Eldon, was a British barrister and politician. He served as Lord High Chancellor of Great Britain between 1801 and 1806 and again between 1807 and 1827.
The Anti–Corn Law League was a successful political movement in Great Britain aimed at the abolition of the unpopular Corn Laws, which protected landowners’ interests by levying taxes on imported wheat, thus raising the price of bread at a time when factory-owners were trying to cut wages. The League was a middle-class nationwide organisation that held many well-attended rallies on the premise that a crusade was needed to convince parliament to repeal the corn laws. Its long-term goals included the removal of feudal privileges, which it denounced as impeding progress, lowering economic well-being, and restricting freedom. The League played little role in the final act in 1846, when Sir Robert Peel led the successful battle for repeal. However, its experience provided a model that was widely adopted in Britain and other democratic nations to demonstrate the organisation of a political pressure group with the popular base.
The Bretton Woods system of monetary management established the rules for commercial relations among the United States, Canada, Western European countries, and Australia and other countries, a total of 44 countries after the 1944 Bretton Woods Agreement. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent states. The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold. It also envisioned greater cooperation among countries in order to prevent future competitive devaluations, and thus established the International Monetary Fund (IMF) to monitor exchange rates and lend reserve currencies to nations with balance of payments deficits.
The Radicals were a loose parliamentary political grouping in Great Britain and Ireland in the early to mid-19th century who drew on earlier ideas of radicalism and helped to transform the Whigs into the Liberal Party.
Hugh Fortescue, 2nd Earl Fortescue KG, PC, styled Viscount Ebrington from 1789 to 1841, was a British Whig politician.
Thomas Tooke was an English economist known for writing on money and economic statistics. After Tooke's death the Statistical Society endowed the Tooke Chair of economics at King's College London, and a Tooke Prize.
The history of the United States dollar began with moves by the Founding Fathers of the United States of America to establish a national currency based on the Spanish silver dollar, which had been in use in the North American colonies of the Kingdom of Great Britain for over 100 years prior to the United States Declaration of Independence. The new Congress's Coinage Act of 1792 established the United States dollar as the country's standard unit of money, creating the United States Mint tasked with producing and circulating coinage. Initially defined under a bimetallic standard in terms of a fixed quantity of silver or gold, it formally adopted the gold standard in 1900, and finally eliminated all links to gold in 1971.
The Philosophical Radicals were a philosophically minded group of English political radicals in the nineteenth century inspired by Jeremy Bentham (1748–1832) and James Mill (1773–1836). Individuals within this group included Francis Place (1771–1854), George Grote (1794–1871), Joseph Parkes (1796–1865), John Arthur Roebuck (1802–1879), Charles Buller (1806–1848), John Stuart Mill (1806–1873), Edward John Trelawny (1792–1881), and William Molesworth (1810–1855).
The British Currency School was a group of British economists, active in the 1840s and 1850s, who argued that the excessive issuing of banknotes was a major cause of price inflation. They believed that, in order to restrict circulation, issuers of new banknotes should be required to hold an equivalent value of gold as a reserve. This concept was also known as convertibility and the currency principle. They argued that prices were mostly based on quantity of currency in circulation, but did acknowledge that prices were also affected by deposits. Therefore, by controlling prices banks could limit outflow of gold.
The Days of May was a period of significant social unrest and political tension in the United Kingdom in May 1832, after the Tories blocked the Third Reform Bill in the House of Lords, which aimed to extend parliamentary representation to the middle and working classes as well as the newly industrialised cities of the English Midlands and the North of England.
Sir Ralph George Hawtrey was a British economist, and a close friend of John Maynard Keynes. He was a member of the Cambridge Apostles, the University of Cambridge intellectual secret society.
An international monetary system is a set of internationally agreed rules, conventions and supporting institutions that facilitate international trade, cross border investment and generally the reallocation of capital between states that have different currencies. It should provide means of payment acceptable to buyers and sellers of different nationalities, including deferred payment. To operate successfully, it needs to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade, and to provide means by which global imbalances can be corrected. The system can grow organically as the collective result of numerous individual agreements between international economic factors spread over several decades. Alternatively, it can arise from a single architectural vision, as happened at Bretton Woods in 1944.
Fiat money is a type of currency that is not backed by a precious metal, such as gold or silver, or backed by any other tangible asset or commodity. Fiat currency is typically designated by the issuing government to be legal tender, and is authorized by government regulation. Since the end of the Bretton Woods system in 1971, the major currencies in the world are fiat money.
