We cannot do better than Marcello Cecco's (1984: 1) concise definition
of an international gold standard: it exists ‘when gold is the effective
numeraire in most countries, and/or when the other means of payment
used as monetary numeraire in those countries are readily redeemable
in gold at their bearers' request’. Such a standard existed from the mid-1890s to 1914, even though Britain went on the gold standard much
earlier than that, in 1816, and Germany a little over a half century
later, in 1871. The Latin Union in Europe (France, Belgium,
Switzerland and Italy) did not join effectively until 1900 (Mertens
1994). Many claims were, and are still made for the system: that it
facilitated international trade by providing a uniform standard of
value; and as an automatic adjustment system, it freed markets from
the (nationalistic) interference of public authorities while it created
price equalisation in traded goods and ensured, over a protracted
period, price stability.
The ‘Gold Standard’ in the title of this talk refers to the ‘academic
gold standard’ invoked by Lord Ashby (1964; see also Austin 1980),
one time Master of Clare College, Cambridge, a British educationist
who was deeply involved with the development of universities in the
later years of colonial rule in British West Africa. Although the
University of the Witwatersrand and the city of Johannesburg owe a
great deal to the gold industry, my talk is not about money or the
metal's place in it. It is about the metaphorical ‘academic gold
standard’.