Why there was no gold standard system in Chinese history

Because gold was very rare in ancient times, it was not suitable for currency circulation.

The gold standard is a monetary system with gold as its standard currency.

Under the gold standard, the exchange rate is fixed, which eliminates the uncertainty of exchange rate fluctuations and is conducive to world trade. Central banks of various countries have fixed gold prices, so the actual value of the currency is stable.

The gold standard automatically adjusted the balance of payments and promoted the prosperity and development of the world economy during the rising stage of capitalism.

When different countries use the gold standard, the exchange rate between countries is determined by the ratio of the gold content of their respective currencies - the gold parity.

The gold standard became popular in the mid-19th century. There have been three forms of gold standards in history: gold coin standard, gold nugget standard, and gold exchange standard. Among them, gold coin standard is the most typical form. In a narrow sense,

, the gold standard refers to this monetary system.