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In: Economics

Why did the U.S. return to the gold standard in 1875?

Why did the U.S. return to the gold standard in 1875?

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Expert Solution

It can be mentioned that in the early 1870s , what happened is that the World Trade levels increased to a great extent as a result of which standard of transactions should be done so that no country can actually default by using the paper currency as it is always risky and United States took the responsibility of it and that is the reason why it went back to the gold standard in order to cater the needs of the increasing trade level on the whole.

Rahul Sunny answered 2 years ago
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