In economics, bimetallism is a monetary standard in which the value of the monetary unit is defined as equivalent both[1] to a certain quantity of gold and to a certain quantity of silver; such a system establishes a fixed rate of exchange between the two metals. The defining characteristics of bimetallism are:
Both gold and silver money are legal tender in unlimited amounts.
The government will convert both gold and silver into legal tender coins at a fixed rate for individuals in unlimited quantities. This is called free coinage because the quantity is unlimited, even if a fee is charged.
The combination of these conditions distinguish bimetallism from a limping standard, where both gold and silver are legal tender but only one is freely coined (example: France, Germany, or the United States after 1873), or trade money where both metals are freely coined but only one is legal tender and the other is trade money (example: most of the coinage of western Europe from the 1200s to 1700s.) Economists also distinguish legal bimetallism, where the law guarantees these conditions, and de-facto bimetallism where both gold and silver coins actually circulate at a fixed rate.
So sayeth Wiki...
Originally posted by annakate
What is bimetalism?? I've never heard of it..