In 1871-73, newly unified Germany adopted the gold standard, replacing the silver-based currencies that had been … gold and silver currencies. As a result, silver currencies depreciated sharply, and severe deflation ensued in the gold … block. Why did Germany switch to gold and set the train of destructive events in motion? Both a review of the …

In 1871-73, newly unified Germany adopted the gold standard, replacing the silver-based currencies that had been … bimetallism, i.e., a near-universal fixed exchange rate system in which (mostly) France stabilized the exchange value between gold … and silver currencies. As a result, silver currencies depreciated sharply, and severe deflation ensued in the gold block …