I see this all the time, mostly when references are made about the dollar and how it was once backed by gold
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In a technical sense, it means the government agrees that you trade a specified amount of currency for a specified weight of gold.
In a practical sense, it is “paid for” and means any of the following:
a) chronic unemployment and underinvestment in the economy,
b) a government that is slowly undermining its promise to exchange money for gold until one day it cannot meet that promise
c) a population with lowered wages but works hard to export what they make for more gold imports
d) or a helluva lot of constant gold mining.
The only real upside to a gold system is it holds back the trickle down people from freely printing new money to give to already-rich people, which they do these days.
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