The Duke was even happier when he heard Emperor Hua say this, and the atmosphere on both sides was very good.

At the end of this pleasant meeting, Wang Zhankui put a check of 100,000 pounds into the pocket of Duke Maxim Kanunikov's blazer, the common currency of Europe in this era.

Emperor Hua still has a good impression of Duke Maxim Kanunikov. The most important thing is that Duke Maxim Kanunikov knows some financial knowledge.

"Your Majesty, will it be inappropriate to give money?" Princess Katrina Kaif asked on the way back.

The cute president smiled and said, "It will never be inappropriate to give money at any time."

Catherine also nodded and said, "If he doesn't want it, he can return it, but if we haven't given it, we don't know if it can be given it. If it can be given it, it is of course the best."

"Mrs. Catherine and His Majesty have increasingly common views." Princess Katrina Kaif smiled and said a pun.

Katherine blushed with pink face and secretly looked at Princess Katrina Kaif. Princess Katrina Kaif didn't look angry.

"The money issue is not the point. After I talked to Duke Maxim Kanunikov today, I felt that he was also very clear about the current international situation. If Tsarist Russia wants to get rid of the shadow of the Russian-Turkish war as soon as possible, it must remain stable. At least, without foreign aid, don't want to fight with China alone. Moreover, even if there are foreign aid, they'd better avoid facing China head-on." Emperor Hua's firm tone, "Otherwise, Russia's monetary system will collapse first."

After the collapse of the gold standard, capitalist countries generally implemented a monetary system for the circulation of paper money. Although the currencies of various countries still stipulate gold content, paper money cannot be required to be cashed.

The implementation of the paper currency circulation system has opened a convenient door for governments to over-issuance of paper currency and implement inflation policies.

From then on, the monetary system of capitalist countries is no longer relatively stable.

Inflation and violent exchange rate fluctuations have caused the monetary and financial sector to become increasingly turbulent and chaotic.

At this stage, the status of the Chinese Yuan was actually roughly the same as that of the British pound, but China's trade volume in Europe has not yet risen to an equal height with the British.

After the reunification of the Emperor of China, the greatest contribution of the establishment of the Chinese country was to establish the dominance of the Chinese yuan. In the entire Pacific region, an international monetary system centered on the Chinese yuan was established. This was actually a gold exchange standard system. Gold coins were not circulated in China, but governments of other countries were allowed to exchange gold with Chinese banks. The Chinese yuan became the main reserve asset of countries with trade with China.

However, affected by the deterioration of relations with Britain and France, the Chinese and Yuan system gradually began to shake.

The gold coin standard is the earliest form of the gold standard monetary system, also known as the classical or pure gold standard, and its popularity began in 1879.

Free minting, free exchange and free gold export are the three major characteristics of this monetary system.

Under this system, the Chinese government stipulates the gold content of the currency in the form of law. The comparison of the gold content of the currencies between the two countries is the parity of coin that determines the exchange rate basis.

Gold can be freely exported or imported into the country, and during the export process, it forms a coin-mint price flow mechanism, which automatically regulates the exchange rate.

The exchange rate under this system has little fluctuation due to the effect of coin parity and the limitation of gold conveying points.

The gold bar standard system is a disguised gold standard system that handles international settlement with gold bars, also known as the gold bar standard system.

Under this system, the state stores gold nuggets as reserves; the exchange relationship between various currencies and gold in circulation is restricted, and free exchange is no longer implemented, but when needed, the amount of gold nuggets can be exchanged with paper money to the national central bank without restrictions according to the specified limit. It can be seen that this monetary system is actually a gold standard with restrictions attached to the restricted conditions.

The gold exchange standard system is also a gold standard system in China that maintains foreign exchange in gold nugget standard or gold coin standard countries and allows its own currencies to exchange foreign exchange without restrictions.

Under this system, only bank bonds are circulated in China. Bank bonds cannot be exchanged for gold, but can only be exchanged for the currencies of countries that implement gold nuggets or gold standard. In addition to gold, international reserves also have a certain proportion of foreign exchange. Foreign exchange can only be exchanged for gold abroad. Gold is the last means of payment.

Most European countries of this era also have this system.

Countries that implement the gold exchange standard must maintain a fixed ratio of their currency to another country that implements the gold nugget or gold coin standard, and maintain the stability of their currency value by unrestricted buying and selling foreign exchange.

China is trying to cool its overheated economy through currency tightening, with France and Russia just ending a period of inflation and returning to the gold standard.

Both China and Russia have encountered large-scale capital inflows, and the resulting balance of payments surplus has allowed the two countries to absorb the world's gold as currency at an astonishing rate.

This is also the key to the Emperor of China's belief that peace can be maintained with Tsarist Russia in the near future. The Emperor of China is gambling, using the attitude of Tsarist Russia, betting on the strategic actions that the Emperor of China will take against Britain and France, which is quite dangerous, because at this time, it can be said that China is irreconcilable.

Other countries that implement the gold standard have the only way to sell domestic assets to preserve their decreasing gold reserves, which has led to a global monetary tightening.

However, Huahuang knew that the gold standard was untenable. Only by comprehensively building the status of the Chinese Yuan, creating the international influence of China, and stabilizing the situation of China can we ensure that the transition from the Chinese Yuan to the currency standard system will be completed.

The gold standard will collapse sooner or later. It will not be this century or the beginning of the next century. Huahuang believed that the main reason for the collapse was that the growth rate of gold production was far lower than the growth rate of commodity production, and gold could not meet the growing demand for commodity circulation, which greatly weakened the basis for the circulation of gold coins.

The distribution of gold stocks in various countries is uneven.

The five countries of the United States, Britain, Germany, France and Russia account for two-thirds of the world's gold stock. Most of the gold stock is controlled by a few powerful countries, which will inevitably lead to the damage to the free casting and free circulation of gold coins, weakening the basis for the circulation of gold coins in other countries.

If the world war breaks out, gold will be concentrated in the warring countries to purchase arms, and the free export and bank coupons will be stopped, which will eventually lead to the collapse of the gold standard.

The impact of the collapse of the gold standard will be revealed at once. The collapse of the gold standard will have a huge impact on international finance and even the world economy: it has opened a convenient door for the general currency depreciation of various countries and the implementation of inflation policies.

This is because after the abolition of the gold standard, countries will indiscriminately issue unchanged paper money in order to make up for the fiscal deficit or expand their arms to prepare for war, which will accelerate regular inflation, which will not only destroy the circulation and credit system of countries' lending currency, but also exacerbate the shrinking of export trade and the deterioration of international payments.

Huahuang predicts that it will also lead to violent fluctuations in the exchange rate and impact the world exchange rate system.

Under the gold standard system, the internal and external values ​​of currencies of various countries are generally consistent, the price ratio between currencies is relatively stable, and the exchange rate system also has a relatively solid foundation. However, after various countries circulate paper money, the exchange rate decision process becomes complicated. The changes in the balance of payments and the supply and demand caused by inflation play a decisive role in the exchange rate, thus affecting the exchange rate system and affecting the international currency and financial relationship.

In the context of the economic crisis, in order to facilitate inflation, achieve exports of unsold commodities, and accelerate economic recovery.

After the revocation of the peg, the exchange rates of currencies in circulating around the world led by the Chinese Yuan fluctuated frequently, impacting the relatively balanced world exchange rate system in the past and leading to the destruction of the credit system. As a special commodity with both monetary attributes, commodity attributes and financial attributes, under the above background, countries will naturally choose to reserve gold instead of using gold to exchange for banknotes that other countries can print with money printing machines at will. Naturally, the gold price will rise, or rather than the gold price rises, but the money depreciates.
Chapter completed!