Google
Monday 
September 20, 2021 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
RIGID PRICES: The proposition that some prices adjust slowly in response to market shortages or surpluses. This condition is most important for macroeconomic activity in the short run and short-run aggregate market analysis. In particular, rigid (also termed inflexible or sticky) prices are a key reason underlying the positive slope of the short-run aggregate supply curve. Prices tend to be the most rigid in resource markets, especially labor markets, and the least rigid in financial markets, with product markets falling somewhere in between.

Visit the GLOSS*arama


GOLD CERTIFICATES:

Paper currency issued and authorized by the U.S. Department of the Treasury that is, in principle, backed up by, and exchangeable for, an equivalent value of gold. Gold certificates were in circulation as a medium of exchange for the U.S. economy during two periods, 1865 to 1922 and 1928 to 1934. A similar form of paper currency is silver certificates.
Gold certificates are a type of currency that is, in principle, tied to a given quantity of gold safely stockpiled by government, it can be, in principle, exchanged for gold. The certificates merely represent, or give title to, the actual gold. As such, the gold certificates are as good as the gold itself as a medium of exchange. If the gold functions as the medium of exchange, then so too does the gold certificates.

From Commodity to Fiat

Gold certificates, along with silver certificates, represent a transition between commodity money and fiat money. With commodity money the silver or gold metal is used as the actual medium of exchange. This money has value in exchange AND value in use. With fiat money, however, currency has value in exchange but little or no value in use.

Gold certificates, that is the paper currency itself, has little or no value in use, but it can be, in principle, exchanged for the gold that DOES have value in use. In theory, ideally, in principle, the gold with its value in use is the ultimate medium of exchange. However, in practice, in reality, the paper certificates with little or no direct value in use are the medium.

If the general public never exchanges the paper certificates for the metal, if the public loses track of how much metal is actually stockpiled to back the certificates, then the certificates need not be backed fully by the metal. This moves the certificates several steps closer to fiat money.

Two Sets of Gold

Gold certificates were issued and circulated during two periods, 1865 to 1922 and 1928 to 1934.
  • The first period, 1865 to 1922, produced large-sized bills (about 25 percent larger than modern currency) in nine denominations ($10, $20, $50, $100, $500, $1,000, $5,000, and $10,000). The 1907 $10 gold certificate contained a gold Roman numeral "X" on the face, giving rise to the "sawbuck" nickname for the ten-dollar bill. The 1906 $20 gold certificate had "XX" and generated the "double sawbuck" nickname.

  • The second period, 1928 to 1934, produced small-sized bills that came a lot closer to the look of modern currency (at least before Federal Reserve notes were redesigned in 1996). This more recent set of gold certificates came in nine denominations ($10, $20, $50, $100, $500, $1,000, $5,000, $10,000, $50,000, $100,000). Because the ownership of gold by the public was outlawed in 1933, after than time gold certificates only circulated among Federal Reserve Banks.

<= GEOGRAPHIC MOBILITYGOLDSMITH BANKING =>


Recommended Citation:

GOLD CERTIFICATES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2021. [Accessed: September 20, 2021].


Check Out These Related Terms...

     | currency | silver certificates | Federal Reserve notes | monetary aggregates | M1 | M2 | M3 | L | checkable deposits | near monies | plastic money |


Or For A Little Background...

     | money | money functions | money characteristics | fiat money | commodity money | medium of exchange | liquidity |


And For Further Study...

     | money creation | fractional-reserve banking | banking | Federal Reserve System | monetary economics | monetary base | monetary policy | debit card | monetary economics |


Related Websites (Will Open in New Window)...

     | Federal Reserve System | Federal Reserve Education | U.S. Department of the Treasury | The Currency Gallery | Bureau of Engraving and Printing |


Search Again?

Back to the WEB*pedia


APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time touring the new suburban shopping complex seeking to buy either a large stuffed brown and white teddy bear or a replacement washer for your kitchen faucet. Be on the lookout for gnomes hiding in cypress trees.
Your Complete Scope

This isn't me! What am I?

The Dow Jones family of stock market price indexes began with a simple average of 11 stock prices in 1884.
"No amount of business school training or work experience can teach what is ultimately a matter of personal character. "

-- Truett Cathy, Chick-fil-A Inc. founder

DJA
Dow Jones Averages
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2021 AmosWEB*LLC
Send comments or questions to: WebMaster