monometallism

Monometallism is a monetary system where only one metal is adopted for currency. Traditionally, this metal was either gold or silver. In contrast, bimetallism uses both gold and silver to define the monetary unit.12

A gold standard is a specific type of monometallic system where the currency is fixed to a certain quantity of gold and is freely convertible into it. Historically, countries on a gold standard had fixed exchange rates, and gold flowed between nations to maintain these rates. This system aimed to limit government-induced inflation and provide stability in international trade. However, it also meant that a country's money supply was tied to its gold reserves, potentially limiting economic flexibility. Since 1971, the U.S. has operated on a fiat money system, where currency value is based on government decree rather than a commodity.345