In the 30’s United Kingdom Pegged the Sterling pound to the sterling pound! Instead of gold. What do this mean in reality pegging it to it’s own value?

Question

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In: Economics

Answer 1

I think there are layers of mistranslation here. The UK abandoned the gold standard in the 30s. Which might be what you meant.

What it means is that people/banks can’t turn their gold into uk pounds and back directly. Which allows the central bank a lot more freedom because it doesn’t have to worry about running out of gold when the banks want to pull out gold.