International monetary system

Bimetallism standard

Monometallism standard

Paper standard

Commodity standard

Barter

Precious metals

Coins• Full bodied • Debased

Gold standard

Gold currency standard

Gold bullion standard

Gold exchange standard

Conditions for successful functioning

• No restriction on movement of gold

• Governments should no offset the effect of gold movements

• Central banks act as apex bodies to hold gold reserves

• Unrestricted minting and melting at the option of holder

Reasons for breakdown of gold standard

• Uneven distribution of gold USA and France had a bulk of it

• Some countries imposed restriction on trade

• World war in 1914 strained political relations between countries