Examples of gold standard in a Sentence
the gold standard for accurate experimental procedures is the double-blind medication trial
Recent Examples of gold standard from the Web
Grillworks Inspired by the Argentinian parrilla and manufactured in northern Michigan, this is the gold standard of wood-burning grills.
For more than half a decade, Northern Illinois was the gold standard in the Mid-American Conference.
Despite the passage of so many years, the Civil Rights Act of 1964, the Voting Rights Act of 1965 and the housing act are the gold standard in civil rights legislation.
An average of two polls (neither of which are gold standard) taken since the beginning of the year has Cagle ahead of Abrams by a 5.5 percentage point margin.
The Hazelden Betty Ford Foundation is the gold standard for in-patient treatment of alcoholism and drug addiction.
The Griffins, who have won three straight outright league titles since then, have been the gold standard in the league.
The link was especially strong under the gold standard because trade imbalances were financed by gold flows.
The series was quickly feted as a new gold standard for a hit sitcom, and was just as quickly renewed.
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Financial Definition of GOLD STANDARD
What It Is
The gold standard is a monetary system in which the representative currency is based on a fixed amount of gold held by the central government.
How It Works
Paper currency is actually a "legal note," i.e. a debt between the currency holder and the government. In theory, currency represents the obligation to make a payment of the stated amount when presented to the government. When the gold standard was in place, an individual could present a $10 bill to a federal bank and receive $10 worth of gold in return. Gold was used as a base, because it was durable, rare, and almost universally valued.
The price of gold became a barometer for the underlying value of an economy. But because gold is a tangible asset, the price of gold can rise and fall rapidly. It's also subject to speculation, discovery and theft. As a result, the value of currency based on gold depends on the value of gold.
In the last century, the world's economies grew too quickly to be accurately represented by the world's reserves of gold. Therefore, gold standards have been abandoned by almost all economies. The United States abandoned the gold standard in 1971.
Why It Matters
While the gold standard regulates the value of exchanges throughout the economy, it also limits a central government's ability to make monetary adjustments in the current global economy.
After the abandonment of the gold standard, governments gained more ability to affect economies through monetary policy. Monetary policy is contingent upon the central government's ability to adjust an economy's demand for money through interest rates and the supply of currency. This is especially important during times of emergency such as war or natural disaster.
Learn More about gold standard
Britannica.com: Encyclopedia article about gold standard
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