However, with the development of productive forces and the expansion of economic scale, the demand for gold is increasing, while the output of gold is limited and unevenly distributed in the world. Coupled with the influence of war and other factors, the foundation of free casting and free circulation of gold coins is weakening, the possibility of freely convertible gold coins such as paper money is shrinking, and the free import and export of gold in the world is restricted, which eventually leads to the bankruptcy of the gold coin standard system in western countries after the outbreak of World War I, and in 65433. The gold coin standard system prevailed in the capitalist world for about a hundred years. Although it has become a historical relic in the history of currency, it has brought far-reaching influence to the goods towel system.
The basic characteristics of the gold coin standard system are: casting gold coins as the standard currency with a certain amount of gold as the monetary unit; Gold coins can be freely cast and melted, with unlimited legal compensation ability, while limiting the casting and repayment ability of other coins; Coins and banknotes can be freely converted into gold coins or equivalent gold; Gold can freely enter and leave the country; Gold is the only reserve.
The gold coin standard system eliminates the disadvantages of price confusion and unstable currency circulation under the dual standard system, ensures that the currency in circulation does not depreciate relative to the functional currency metal gold, ensures the unification of the world market and the relative stability of the foreign exchange market, and is a relatively stable monetary system.
Historically, from 18 16, when Britain took the lead in implementing the gold standard, to 19 14, before the First World War, all major capitalist countries had implemented the gold standard, and it was a typical gold standard-the gold coin standard.
19 14 after the outbreak of the first world war, in order to raise huge military expenditures, countries have issued banknotes that cannot be cashed, prohibiting the free export of gold and ending the gold standard.
After World War I, 1924- 1928 saw a relatively stable period in the capitalist world, and the production of major capitalist countries recovered to the pre-war level and developed. Countries tried to restore the gold standard. However, because the foundation of gold coin circulation has been weakened, it is impossible to restore the typical gold standard. At that time, except the United States, most other countries could only implement the gold standard, without the circulation of gold coins, that is, the gold bullion standard and the gold exchange standard.
Gold bar standard and gold exchange standard are also called incomplete or incomplete gold standard because they do not have a series of characteristics of gold coin standard. Under the impact of 1929- 1933 world economic crisis, this system has been gradually abandoned by all countries, and all of them have implemented the system of dishonoured credit currency.
After World War II, an international monetary system centered on the US dollar was established, which is actually a gold exchange standard. Gold coins are not circulated in the United States, but other governments are allowed to exchange dollars for gold. The dollar is the main reserve asset of other countries. However, affected by the dollar crisis, the system gradually began to shake. After the U.S. government stopped exchanging US dollars for gold in August of 197 1 and devalued the US dollar twice, this incomplete gold exchange standard also collapsed.