From Bullion to Balance: Monetary Stability under the Silver Currency Standard

Abstract

The silver currency standard had done a significant part in the transformation of historical monetary systems. This study examines the relationship between the silver standard and monetary stability by analysing its theoretical foundations and historical applications. Using a qualitative analytical approach based on historical economic literature, the research explores how linking currency value to silver influenced price stability, trade, and monetary discipline. The study also discusses structural limitations of the system, including fluctuations in silver supply and international exchange dynamics. The findings suggest that while the silver standard provided certain stabilizing mechanisms, it also faced constraints that eventually contributed to the transition toward modern monetary systems.