A gold standard fixes money's value to gold, and Isaac Newton helped start Britain on it

money & economicsWikipedia1870s–1971

A gold standard fixes money's value to gold, and Isaac Newton helped start Britain on it

the gist

A gold standard is a monetary system in which the unit of money is defined as a fixed quantity of gold. It was the basis of the international monetary system from the 1870s to the early 1920s, and again in various forms until 1971, when the United States ended the dollar's convertibility into gold. Britain drifted onto it by accident in 1717, when Isaac Newton, as master of the Royal Mint, set the silver-to-gold exchange rate too low, pushing silver coins out of circulation. Britain's dominance then led other countries to copy its system.

how it works

Each unit of currency can be exchanged for a set amount of gold, so the money supply is limited by the gold available. When a country faces a recession, it cannot print money or cut rates freely without threatening that exchange rate. This rigidity is why economists see it as a constraint on governments.

so what

Because the currency was tied to gold, governments could not easily expand money supply or cut interest rates to fight recessions. Economists today largely reject a return to it, and a 2012 survey of 39 economists found 92 percent agreed it would not improve price stability and employment. Its legacy still shapes debates about central banks and monetary policy.

fun fact

Isaac Newton, famous for gravity, served as Master of the Royal Mint in Britain.

From Wikipedia, the free encyclopedia · text CC BY-SA 4.0

Image: Wikimedia Commons

source: Wikipedia ↗

historyWikipediaclassic1336–1565 · Karnataka, India

Hampi was once one of the world's largest cities, until its Vijayanagara capital was destroyed in 1565

the gist

Hampi is a UNESCO World Heritage Site in Karnataka, India, with more than 1,600 surviving remains spread over 4,100 hectares. It was the capital of the Vijayanagara Empire from 1336 to 1565. Travellers from Persia and Portugal described it as a prosperous, wealthy and grand city with temples, markets and farms along the Tungabhadra River. By 1500 it was estimated to be the world's second-largest city after Beijing, and probably India's richest at the time. In 1565 a coalition of Muslim sultanates defeated the Vijayanagara Empire, its capital was conquered and destroyed, and the city was left in ruins. Hampi remains a religious centre, with the active Virupaksha Temple at its heart.

how it works

The city was built around a fortified core with temples, markets and water structures along the river, supplied by an extensive network of roads and waterworks. When the empire fell, the city was not rebuilt, so its stone monuments were left standing.

so what

Hampi shows how quickly a great city can vanish after a military defeat, and how a ruined capital can remain sacred. Its ruins give historians a view of medieval South Asia that few other sites can match.

fun fact

The name Hampi comes from Pampa, an old name for the Tungabhadra River.

From Wikipedia, the free encyclopedia · text CC BY-SA 4.0

Image: Wikimedia Commons

source: Wikipedia ↗

2 min

politicsshortCNA2:01

False allegations about Singapore’s hand in Indonesia’s markets and a made-up meeting

from CNA

CNA Verify has found close to 400 posts pushing falsehoods tying Singapore to Indonesia’s stock market rout and to a secret meeting that never took place. Together, they drew nearly 12 million views, and some were circulated by accounts that appeared to be working in concert, across multiple social media platforms.

Here’s how the disinformation campaign targeting Singapore was uncovered.

on YouTube: CNA ↗