Gold bloc
Encyclopedia
The term gold bloc was applied to seven nations, France
, Belgium
, Luxembourg
, the Netherlands
, Italy
, Poland
, and Switzerland
, that kept the gold standard
during the world economic crisis of 1929 to 1933
, even as many other nations abandoned it
.
. By this time, some 35 nations including the United States and Italy had abandoned the gold standard.
The currency crisis continued after the devaluation of the United States dollar in 1934 and ongoing devaluation of the British pound sterling. Gold bloc nations found it difficult to maintain a profitable export business and experienced a "flight of capital" to the United States. Belgium and Luxembourg gave up the gold standard in 1935 and devalued their currencies. After the Tripartite Agreement of 1936
between the United States, Great Britain and France, the remaining gold bloc nations abandoned the gold standard.
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, that kept the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
during the world economic crisis of 1929 to 1933
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, even as many other nations abandoned it
.
History
Great Britain, Japan and the Scandinavian nations abandoned the gold standard in 1931. Gold bloc nations recommitted themselves to maintain a stable rate of exchange of their currencies at the 1933 international economic conference in LondonLondon Economic Conference
The London Economic Conference was a meeting of representatives of 66 nations from June 12 to July 27, 1933, at the Geological Museum in London. Its purpose was to win agreement on measures to fight global depression, revive international trade, and stabilize currency exchange rates.The Conference...
. By this time, some 35 nations including the United States and Italy had abandoned the gold standard.
The currency crisis continued after the devaluation of the United States dollar in 1934 and ongoing devaluation of the British pound sterling. Gold bloc nations found it difficult to maintain a profitable export business and experienced a "flight of capital" to the United States. Belgium and Luxembourg gave up the gold standard in 1935 and devalued their currencies. After the Tripartite Agreement of 1936
Tripartite Agreement of 1936
The Tripartite Agreement was an international monetary agreement entered into by the United States, France, and Great Britain in September 1936 to stabilize their nations' currencies both at home and in the exchange.-History:...
between the United States, Great Britain and France, the remaining gold bloc nations abandoned the gold standard.