Monetary Standard (Noun)
Meaning
The value behind the money in a monetary system.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The adoption of a monetary standard can provide a basis for measuring the value of money within a particular economic system.
- Throughout history, gold and silver have served as the primary monetary standard due to their scarcity and aesthetic appeal.
- As countries shifted from a gold standard to a fiat monetary standard, the value of their currencies became detached from tangible assets.
- The current monetary standard of certain countries relies heavily on their economic output and the central banks' credibility in regulating inflation.
- Countries experiencing severe inflation are advised to peg their currency to a stronger foreign monetary standard or use other strategies to counter its devastating effects.