Gold standard

An archaic monetary system under which the standard unit of currency was tied to a fixed quantity of gold. Historically, countries on a gold standard set a fixed price for gold, meaning the price was contrived as opposed to market-based. Paper currency was commonly convertible to gold (or silver) at a pre-determined rate.

The benefit of a gold standard being it prevents central banks from printing money, which effectively devalues a nation’s currency to either improve export competitiveness or monetize debt.