Question

What is the gold exchange standard? What are the differences between the classical gold standard and the gold exchange standard? When and how did it collapse?

Answer 1

Gold exchange standard means

a monetary system under which the value of a country's currency is kept at parity with another currency that is based on the gold standard.

Classical gold standard means

The gold standard can refer to several things, including a fixed monetary regime under which the government's currency is fixed and may be freely converted into gold. It can also refer to a freely competitive monetary system in which gold or bank receipts for gold act as the principal medium of exchange.

The classical gold standard began in England in 1819 and spread to France, Germany, Switzerland, Belgium and the United States. Each government pegged its national currency to a fixed weight in gold.