Can You Define Monetary Standard?

Monetary standard is an economic unit by which all kinds of economic values are measured. The monetary standard or standard money can be gold, silver, both gold and silver or proper convertible or inconvertible into gold and silver.

When the unit of account is gold in the country, the currency is said to be on the gold standard. When silver is the standard monetary unit, it is said to be on the silver standard. When both gold and silver serve as monetary unit, the country is on Bimetallism. If the country's measure of value is paper, it is said to be on paper standard. Monetary standard is different from monetary system.

Monetary standard is different from monetary system. Monetary standard as stated above is the unit of account by which we measure values. Whereas monetary system includes in its scope the designation of the unit of account plus the whole government mechanism established to regulate the creation of money and to control its quantity in circulation. The monetary system is designed in every country in accordance with its domestic and international requirements.

We can say that all the economic values are dependent on the monetary system and it is the main part of the economic system of the country.