document_title: Smoking age

question_text: how old do you have to be to buy cigarettes in georgia

root

text: Smoking age

text: Smoking age laws by region[edit]

text: Africa[edit]

text:
Country

De jure

Notes

Legal age to smoke any tobacco products

Legal age to buy any tobacco products

 Algeria

None

19

It is illegal to sell tobacco products to minors under the age of 19 years. (Chapitre IV sur les problèmes de santé l'article 93: "la vente de tabac ou produits du tabac aux mineurs est interdite".)[1]

 Angola

None

18

It is illegal to sell tobacco to minors under the age of 18.[2]

 Benin

None

18

[3]

 Botswana

None

18

It is illegal to sell tobacco to minors under the age of 18. Any person who sells, by retail, any tobacco product, shall display clearly, for the public, a notice to the effect that the sale of any tobacco product to a person under the age of 18 years is prohibited.[4]

 Burkina Faso

None

18

[5]

 Burundi

None

18

It is illegal to sell cigarettes to anyone under the age of 18. Other tobacco products are not regulated.[6]

 Cameroon

15

 Cape Verde

15

 Central African Republic

14

 Chad

18

It is illegal to sell tobacco to a minor. Minors and pregnant women may not smoke in public.[7]

 Comoros

None

18

The sale of tobacco products to minors is prohibited. Vendors of tobacco products must visibly and prominently display at their point of sale a notice of prohibition of the sale of tobacco to minors and by minors.[8]

 Republic of the Congo

18

[9]

 Democratic Republic of the Congo

18

It is illegal for minors to smoke in public, and for anyone to give or sell tobacco to a minor.(ARRETE MINISTERIEL N°1250 Article 1: L'usage, la vente, l'achat et la consommation du tabac, de ses produits et de ses dérivés sont strictement interdits aux mineurs.)[10]

 Djibouti

None

16

It is illegal to sell tobacco products to a minor under the age of 16 years. A notice with the sale restrictions has to be placed at point of sale.[11]

 Egypt

18

The sale of tobacco products to persons under the age of 18 is prohibited.

 Equatorial Guinea

18

[12]

 Eritrea

None

18

[13]

 Ethiopia

None

18

"No person may directly or indirectly give, provide or sell any tobacco product to a person under the age of 18."[14]

 Gabon

None

18

[15]

 Gambia

None

 Ghana

18

[16]

 Guinea-Bissau

15

 Kenya

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years. There is no minimum age to possess tobacco or smoke in public.[17]

 Lesotho

14

 Liberia

18

It is illegal to sell or supply tobacco to a minor. Minors may not consume tobacco at any public place.[18]

 Libya

None

18

It is strictly prohibited to sell any tobacco product to a person under the age of 18 years.[19]

 Madagascar

None

18

[20]

 Malawi

14

 Mali

None

18

[21]

 Mauritius

18

A person must be 18 years old to purchase or to smoke cigarettes including any tobacco products as is indicated in Public Health (Restrictions on Tobacco Products) Regulations 1999, Sec. 2(e)(i)).

 Morocco

16

 Mozambique

None

18

[22]

 Namibia

None

18

It is illegal to sell or supply tobacco to a minor.[23]No minimum age prior to 14 April 2010.

 Niger

None18 (to enter smoking room or facility)

18

It is illegal to sell tobacco products to a minor. Minors may not enter any smoking room or facility where smoking is permitted by law.[24]No minimum age prior to 17 July 2008.

 Nigeria

None

18

It is illegal to sell, give or otherwise supply tobacco products to a minor.[25]

 Republic of the Congo

14

 Rwanda

None

18

It is prohibited to involve a person under 18 in, buying, selling and exchanging of tobacco and tobacco products. It is also prohibited for the seller to sell tobacco and tobacco products to a person under 18.[26]

 São Tomé and Príncipe

None

16

[27]

 Senegal

None

18

It is illegal to sell or give tobacco to a person under the age of 18 years. (Chapitre III.- Accès aux produits du tabac: Article 17 Il est interdit de vendre ou d'offrir aux mineurs ou de faire vendre ou de faire offrir par les mineurs du tabac ou tout produit du tabac.)[28]

 Seychelles

18

[29]

 Somalia

15

 South Africa

18

It is illegal to sell or supply any tobacco product to a person under the age of 18.[30]

 South Sudan

15

 Swaziland

None

18

It is illegal to sell and give tobacco to anyone under the age of 18 years.[31]

 Sudan

None18 (to enter smoking room or facility)

18

It is illegal to sell or give tobacco to a minor. Anyone under the age of 18 may also not handle, store, work or produce with tobacco or within such a facility.[32]

 Tanzania

18

It is unlawful to sell or give tobacco products to a minor, and to smoke such tobacco products if the individual is younger than 18 years.[33]

 Togo

None

18

It is illegal to sell or give any tobacco product to a minor.[34]

 Tunisia

None

18

[35]

 Uganda

None

21

It is now illegal for a person below the age of 21 to access cigarettes.[36]

 Zambia

None

16

It is illegal to sell tobacco to anyone under age 16. No minimum age for consumption and possession in public.No minimum age prior to 1 January 1993.[37]

 Zimbabwe

None

18

It is illegal to sell or give tobacco products to anyone under the age of 18. Minors may not sell tobacco.[38]

tag: table

text: Americas[edit]

text:
Country

De jure

Notes

Smoking age

Purchase age

 Antigua and Barbuda

None

Antigua and Barbuda doesn't have any restrictions towards selling tobacco to minors or smoking in general.[39]

 Argentina

None

18

It is illegal to sell tobacco products to minors.[40]

 Bahamas

None

18

[41]

 Belize

None

 Bermuda

None

18

No person shall sell or supply any cigarettes, tobacco or tobacco products to a minor. A person selling or supplying any cigarettes, tobacco or tobacco products to a person who appears to be under 25 years of age shall, before selling or supplying them, ensure, by requiring photo identification, that the latter person is not a minor.[42]

 Bolivia

None

18

The sale of tobacco products to minors under the age of 18 years is prohibited.[43]

 Brazil

None

18

It is illegal to "sell Products whose ingredients can cause physical or psychic dependence, even if only through improper use" (…). This also includes tobacco products of any kind.[44]

 British Virgin Islands

None

18

It is illegal to sell or offer to sell tobacco to anyone under the age of 18 years. It is not illegal for minors to purchase, possess or consume tobacco.[45]

 Canada

Regulations by province and territory:

Province/territory

Smoking age

Purchase age

Notes

Federal Government

None

18[46]

It is illegal to sell or supply tobacco products to a minor under the age of 18.The minimum age was 16 years of prior to 1994.[47]

 Alberta

18[48]

It is illegal to sell or supply tobacco products to a minor under the age of 18. Further, minors are not permitted to smoke at any public place.

 British Columbia

None

19[49]

 Manitoba

None

18[50]

It is illegal to sell, give, buy for, lend or otherwise provide tobacco products to anyone under the age of 18 years. Parents can provide tobacco products to their children on private property. Further it is legal to supply tobacco to a minor if it is solely for use in traditional Aboriginal spiritual or cultural practices or ceremonies.

 New Brunswick

None

19[51]

It is illegal to sell and supply tobacco products to anyone under the age of 19 years. It is also illegal to attempt to purchase tobacco on behalf of, or for the purpose of resale to, a person under the age of 19 years.

 Newfoundland and Labrador

None

19[52]

It is illegal to sell, give or furnish, directly or indirectly, tobacco to a person under the age of 19 years.

 Northwest Territories

None

18[53]

No person shall sell or supply, or offer to sell or supply, tobacco or a tobacco accessory to a person under the age of 18. No one under the age of 18 years shall purchase or attempt to purchase tobacco or a tobacco accessory.

 Nova Scotia

19[54]

19[55]

No vendor or employee of a vendor shall sell or give tobacco or a tobacco product to a person under the age of nineteen years. No person shall purchase tobacco or a tobacco product on behalf of, or for the purpose of resale or give tobacco or a tobacco product, to a person under the age of nineteen years. No person under the age of nineteen years may possess tobacco.

 Nunavut

None

19[56]

No person shall sell or supply, or offer to sell or supply, tobacco to a person who is less than 19 years old.

 Ontario

None

19[57]

No person shall sell or supply tobacco to a person who is less than 19 years old. No person shall sell or supply tobacco to a person who appears to be less than 25 years old unless he or she has required the person to provide identification and is satisfied that the person is at least 19 years old.

 Prince Edward Island

None

19[58]

No person shall sell or supply tobacco to a person under the age of 19 years. No person shall purchase or attempt to purchase tobacco on behalf of, or for the purpose of resale to, a person under the age of 19 years. It is legal to supply tobacco to a minor if it is solely for use in traditional Aboriginal spiritual or cultural practices or ceremonies.

 Quebec

None

18[59]

It is illegal to sell tobacco to anyone under the age of 18 years. The operator of a tobacco retail outlet may not give tobacco to a minor. The operator of a tobacco retail outlet may not sell tobacco to an adult, if the operator knows the person is purchasing the tobacco for a minor.

 Saskatchewan

None

18[60]

It is illegal to sell, lend, assign, give or send tobacco to anyone under the age of 18 years.

 Yukon

18 (federal law)

The territory Yukon has no legislations which restrict the sale of tobacco products to minors. Federal laws apply.

 Chile

None

18

It is illegal to sell any form of tobacco to a person under the age of 18 years.[61]

 Colombia

None

18

It is forbidden for any individual  or  legal  entity  to  directly  or  indirectly  sell  tobacco  products  and  its derivatives in any of its presentations to minors under the age of 18 years.  In case of question, one must ask each tobacco purchaser to show that he has reached majority age.[62]

 Costa Rica

None

18

Tobacco products may not be sold to minors. Wholesale or retail vendors of products shall have the obligation, at their own expense, to display posters that are visible, clear and prominently placed on the inside of places of sale, stating that the sale of tobacco products to minors is prohibited.[63]

 Cuba

None

18

Minors cannot legally buy tobacco,[64] but stores may sell it to those who look 13 or older.[citation needed]

 Cayman Islands

None

18

Tobacco Law, 2007 PART V – Section 10: No person shall sell tobacco to a minor.[65]

 Dominican Republic

None

18

It is illegal to sell tobacco to a person under the age of 18 years.[66]

 Ecuador

None

18

It is illegal to sell or let sell tobacco to or by a minor.[67]

 El Salvador

None

18

It is illegal to sell or give tobacco to a minor.[68]

 Falkland Islands

None

 Guatemala

18

It is illegal to sell tobacco products to anyone under the age of 18 years. Public consumption of tobacco by minors is prohibited. (El decreto 90-97, Código de Salud, indica en su artículo 50)[69]

 Guyana

None

18

No tobacco may be sold or furnished to a minor.[70]

 Haiti

None

18

 Honduras

None

21

The sale and/or gifting of tobaccoderived products to persons under 21 years of age is prohibited.[71]

 Jamaica

None

18

[72]

 Mexico

None

18

[73]

 Nicaragua

None

18

[74]

 Panama

None

18

The sale of tobacco products to minors is prohibited.[75]

 Paraguay

None

18

It is unlawful to sell tobacco products to anyone under the age of 18 years.[76]

 Peru

18

The sale of tobacco products to/by minors under the age of 18 is prohibited.[77]

 Trinidad and Tobago

None

18

Tobacco shall not be sold to or by a child under the age of 18 years.[78]

 United States(50 states and integral territories)
The federal law requires states to have a minimum age of 18 years for sale/purchase of tobacco products (21 U.S.C. § 387f. (3)(a)(ii)). State and local laws may extend this ban and also prohibit supply, possession and consumption to/by person underage, or increase the age beyond 18. However, most states do not directly ban the consumption of tobacco by a minor. The federal law requiring states to have a minimum purchasing age at 18 is enforced by withholding FEMA disaster and non-disaster grants from states that have purchasing ages under 18, and currently no state falls under that category.

Regulations by state:

State/territory

Smoking age

Purchase age

Notes

 Alabama

19 (including Alabama National Guard Bases) 18 (on military bases under federal law)[79]

It is illegal to sell or give tobacco products to anyone under the age of 19 years. Minors are prohibited from using and possessing tobacco products.The minimum age was introduced in 1896.[80]

 Alaska

None

19[81]

It is illegal to sell or give tobacco products to anyone under the age of 19 years. Possession by minors is prohibited. The minimum age requirement does not apply to a person who is a prisoner at an adult correctional facility.[82]The minimum age of 16 years was introduced in 1978.The minimum age was raised from 16 to 19 in 1988.[80]

 American Samoa

18

 Arizona

None

18[83]

It is illegal to sell or give tobacco products or smoking equipment to anyone under the age of 18 years. It is illegal for a minor to be in possession of tobacco or smoking equipment, or to receive them.

None

21[84][85]

Cottonwood and Douglas have raised their tobacco sales age to 21.

 Arkansas

18[86]

It is illegal to give or sell tobacco to anyone under the age of 18 years. It is illegal for minors to be in possession of tobacco products and to smoke in public.

18

21[87]

Helena–West Helena has raised the sales age for tobacco products to 21.

 California

18[88]

21[89]

As of 9 June 2016, it is illegal to sell or furnish tobacco to a person under 21 years of age, with an exception for people in active military service who are 18 years old. Before 9 June, the age to purchase tobacco was 18 years of age.

 Colorado

18[90]

It is illegal to sell, give or distribute tobacco products to anyone under the age of 18 years. Minors under the age of 18 years are prohibited from being in possession of any tobacco product.

18

21[91]

Aspen has raised the sales age for tobacco products to 21.

 Connecticut

None

18[92]

It is illegal to sell or give tobacco products to anyone under 18. It is illegal for minors to possess tobacco in public.A minimum age of 16 was introduced in 1902.The minimum age was raised from 16 to 18 in 1987.[80]

 Delaware

None

18[93]

Selling, giving or otherwhise distributing tobacco products to anyone under the age of 18 years is illegal. Minors under the age of 18 years are not allowed to attempt to purchase tobacco or to be in the possession of tobacco products.The minimum age of 17 years was introduced in 1953.The minimum age was raised from 17 to 18 in 1992.[80][94]

 Florida

None

18[95]

The Florida Statutes make it a criminal offence so sell or supply tobacco to an individual under the age of 18 years. Minors may also not be in possession of tobacco products.

 Georgia

None

18[96]

It is illegal to sell or give tobacco products to anyone under the age of 18 years. It is illegal for minors to possess tobacco in public. Minors are allowed to possess tobacco products and to consume those, in private home if permission is given by parents or legal guardian.The minimum age of 17 years was introduced in 1987.The minimum age was raised from 17 to 18 in 1993.[80][94]

 Guam

21

The minimum age was raised from 18 to 21, as of 1 January 2018.[97]

 Hawaii

21[98][99]

It is illegal to sell or furnish tobacco to a person under 21 years of age. It is also illegal for a person under 21 years of age to attempt to purchase tobacco.
The minimum age of 15 years was introduced on 11 November 1890.[100]
The minimum age was raised from 15 to 18 on 1 January 1988.[101]
The minimum age was raised from 18 to 21 on 1 January 2016.[102]

 Idaho

18[103][104]

 Illinois

18[105][106][107]

18[105]

21[108]

Fourteen cities in Illinois, including Chicago and Naperville, have raised their tobacco sales age to 21.

 Indiana

None

18[109]

Giving, selling, providing and distributing tobacco to minors is illegal. Minors may not possess, accept or purchase tobacco. Minors are not allowed to enter a tobacco business, defined in state law as a business whose primary activity is the sale of tobacco products and accessories.The minimum age of 16 years was introduced in 1980.The minimum age was raised from 16 to 18 in 1987.[80]

 Iowa

18[110]

It is illegal for minors to be in possession of tobacco, to smoke in public or to purchase tobacco products. It is illegal to sell or distribute tobacco to anyone under the age of 18 years.

 Kansas

None

18[111]

It is illegal to sell or supply tobacco to a minor. Minors may not possess or purchase or attempt to possess or purchase tobacco.

None

21[112]

Nineteen cities in Kansas, including Overland Park and Olathe, have raised their tobacco sales age to 21.

 Kentucky

None

18[113]

It is illegal to sell or supply tobacco to minors. Minors may not purchase or possess tobacco products. Prior to 1990 Kentucky had no minimum age to purchase tobacco. From 1990 until 1992 the minimum age was 16 years.In 1992 the age was raised from 16 to 18 years of age.[94]

 Louisiana

None

18[114]

It is illegal to sell or distribute tobacco to a minor. A minor is not permitted to possess tobacco, except in private residences or if accompanied by a parent, spouse, or legal guardian 21 years of age or older.Prior to 1991 there was no minimum age limit in Louisiana.

 Maine

18[115]

21[116]

It is illegal to sell or distribute tobacco to a minor. A minor is not permitted to possess tobacco, except in private residences or if accompanied by a parent, spouse, or legal guardian 21 years of age or older. Implementation for 21 and older July 2018.

 Maryland

None

18[117][118]

Minimum age raised from 16 to 18 in 1989.[94]

 Massachusetts

None

18[119]

It is illegal to sell tobacco to minors. Anyone else than the parents or guardian are prohibited from giving any form of tobacco to a minor.

None

21[120]

Over 100 cities in Massachusetts, including Boston, have raised their sales age for tobacco products to 21 years.

 Michigan

18[121]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. Minors may not purchase, attempt to purchase, possess, attempt to possess or consume tobacco products in public. Minors are permitted to smoke on private premises.

18

21[122]

Ann Arbor and Genesee County have raised their tobacco sales age to 21.

 Minnesota

18[123]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. Minors may not purchase, attempt to purchase, possess, attempt to possess or consume tobacco products in public. Indian may furnish tobacco to an Indian under the age of 18 years if the tobacco is furnished as part of a traditional Indian spiritual or cultural ceremony.

18

21[124]

Four cities in Minnesota have raised their sales age for tobacco products to 21.

 Mississippi

18[125]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. Minors may not purchase, attempt to purchase, possess, attempt to possess or consume tobacco products in public.

18

21[126]

Adams County has raised their tobacco sales age to 21.

 Missouri

None

18[127]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. It is not illegal to give tobacco to minors on private premises nor is it illegal for minors to smoke in public.Prior to 1992 Missouri did not have a minimum age limit.[94]

None

21[128]

Twelve cities in Missouri, including Kansas City, St. Louis and Jefferson City, have raised their tobacco sales age to 21.

 Montana

None

18[129]

Sale or distribution of tobacco products to persons under 18 years of age is prohibited, whether over the counter, by vending machine, or otherwise.Prior to 1993 there was no minimum age limit.[94]

 Nebraska

18[130][131]

It is illegal to sell, give or furnish, in any way tobacco to a minor. Minors may not smoke in public.

 Nevada

None

18[132]

 New Hampshire

18[133]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. Minors may not purchase, attempt to purchase, possess, attempt to possess or consume tobacco products in public.

 New Jersey

None

21[134]

No person shall sell, give or furnish to a person under 21 years of age, any cigarettes made of tobacco.The minimum age of 16 years was introduced in 1904.The minimum age was raised from 16 to 18 in 1988.The minimum age was raised from 18 to 19 in 2005. The minimum age was raised from 19 to 21 on 1 November 2017.[80]

 New Mexico

None

18[135]

Prior to 1991 New Mexico had no minimum age.

 New York

None

18[136]

It is illegal to sell tobacco products to anyone under the age of 18 years.

None

21[137]

New York City (among others) and come counties have raised the sales age for tobacco products to 21.

 North Carolina

None

18[138]

It is illegal for anyone under age 18 to buy, attempt to buy, to receive, or to use a false or misleading proof of age for the purpose of purchasing or receiving any tobacco product or cigarette wrapping papers.The minimum age of 17 years was introduced in 1891.The minimum age was raised from 17 to 18 in 1991.[80][94]

  North Dakota

18[139]

 Northern Mariana Islands

18

It is illegal to sell and supply tobacco to a minor.

 Ohio

18[140]

None

21[141]

Nine cities in Ohio, including Cleveland and Columbus, have raised their tobacco sales age to 21.

 Oklahoma

None

18[142]

It is illegal to sell, give or otherwise supply tobacco to anyone under the age of 18 years.The minimum age of 18 years was introduced in 1915.

 Oregon

None

21[143]

It is illegal to sell, give or otherwise supply tobacco to anyone under the age of 21 years since 1 January 2018.

 Pennsylvania

None

18[144]

It is illegal to sell, furnish, give or otherwise provide tobacco to a minor. Minors may not purchase or attempt to purchase tobacco products.The minimum age of 16 years was introduced in 1972.The minimum age was raised from 16 to 18 in 1990.[80][94]

 Puerto Rico

None

18

 Rhode Island

18[145][146]

No person under eighteen years of age shall purchase, nor shall any person sell, give, or deliver to any person under eighteen years of age, any tobacco products. No person under eighteen years of age shall use or possess, tobacco in any public street, place, or resort, any tobacco and/or electronic nicotine delivery system in any form.The minimum age of 16 years was introduced in 1896.The minimum age was raised from 16 to 18 in 1988.[80]

18

21[147]

Barrington and Central Falls have raised their sales age for tobacco products to 21 years.

 South Carolina

None

18[148]

It is illegal to sell, give or otherwise supply tobacco to anyone under the age of 18 years. It is illegal for minors to purchase, attempt to purchase, possess, or attempt to possess a tobacco product, or present or offer proof of age that is false or fraudulent for the purpose of purchasing or possessing a tobacco product.

 South Dakota

None

18

Prior to 1989 South Dakota didn't regulate the sale of cigarettes to minors. Only smokeless tobacco products could not be sold to coal minors.

 Tennessee

None

18[149]

It is unlawful for a person who has not attained 18 years of age to possess a tobacco product, to purchase or accept receipt of a tobacco product, or to present or offer to any person any purported proof of age which is false, fraudulent, or not actually that person's own for the purpose of purchasing or receiving any tobacco product.

 Texas

18[150]

It is illegal to sell, give, supply or otherwise provide tobacco to minors. Minors may not purchase, attempt to purchase, possess, attempt to possess or consume tobacco products in public. Exception: The individual younger than 18 years of age possessed the cigarette or tobacco product in the presence of an adult parent, a guardian, or a spouse of the individual or an employer of the individual, if possession or receipt of the tobacco product is required in the performance of the employee's duties as an employee.The minimum age to purchase, possess and consume tobacco was 16 years of age from 1899 to 1989.[94]

18

21[151]

San Antonio has raised its sales age for tobacco products to 21.

 United States Virgin Islands

None

18

[152]

 Utah

19[153]

It is illegal to sell, supply, give or otherwise furnish tobacco products or smoking devices to anyone under the age of 19 years. It is illegal for anyone under the age of 19 years to possess, consume, purchase any tobacco product.

 Vermont

None

18[154]

It is illegal to sell, supply, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal for anyone under the age of 18 years to possess or purchase tobacco products.The minimum age of 17 years was introduced in 1888.The minimum age was raised from 17 to 18 in 1991.[80][94]

 Virginia

18[155]

It is illegal to sell, supply, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal for anyone under the age of 18 years to possess or purchase tobacco products.Prior to 1991 the minimum age to purchase tobacco products was 16 years of age.[94]

 Washington

None

18[156]

It is illegal to sell, give or permit to sell or give tobacco products to anyone under the age of 18 years. It is not illegal for minors to possess or consume tobacco products in public.

 Washington, D.C.

None

21[157]

It is illegal to sell, give or permit to sell or give tobacco products to anyone under the age of 21 years. It is not illegal for minors to possess or consume tobacco products in public. Tobacco use is prohibited at organized sporting events.The minimum age of 16 years was introduced in 1891.The minimum age was raised from 16 to 18 in 1990.[80][94]The minimum age was raised from 18 to 21 in 2016.

 West Virginia

18[158]

It is illegal to sell, supply, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal for anyone under the age of 18 years to possess, consume or purchase tobacco products.

 Wisconsin

None

18[159]

It is illegal to sell, give or permit to sell or give tobacco products to anyone under the age of 18 years. It is not illegal for minors to possess or consume tobacco products in public.

 Wyoming

18[160]

It is illegal to sell, supply, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal for anyone under the age of 18 years to possess, consume or purchase tobacco products.Prior to 1991 Wyoming had no minimum purchase/sale age for tobacco products.[94]

 Uruguay

None

18

It is illegal to sell tobacco to a minor. A clearly legible notice with the sale ban to under anyone under the age of 18 years has to be placed inside and outside the premises.[161]

 Venezuela

None

18

It is illegal to sell or supply tobacco products to a minor.[162]

text: Asia[edit]

text:
Country

De jure

Notes

Smoking age

Purchase age

 Afghanistan

18

It is illegal to sell, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal to smoke or the use of tobacco in public buildings such as hospitals, schools and restaurants.[163]

 Bhutan

Illegal

In 2004, Bhutan became the first country to ban the sale, cultivation, and production of tobacco. People 18 and over may bring a limited amount of tobacco into Bhutan if they pay import duties.

 Brunei

18

It is illegal to sell, give or otherwise furnish tobacco products to anyone under the age of 18 years. It is illegal for minors to possess, buy or consume tobacco products.[164]

 Bangladesh

16

It is illegal to sell tobacco products to anyone under the age of 16 years. Any police-officer in uniform or any other person or class of persons duty authorized by the Government has the power to seize and destroy tobacco products of anyone under the age of 16 years whom he finds smoking in public.[165]

 Cambodia

None

18

Any act of selling or distributing all types of tobacco products to persons aged under 18 years or to pregnant women whose pregnancy is obvious or is realized must be punished with six days to one month in prison and a fine of 100,000 riel to 1 million riel.[166]

 China

None

18

It is illegal to sell tobacco products to minors. No one shall smoke on school or education premises. Weakly enforced to not enforced.No age limit prior to 29 December 2006.[167]

 Hong Kong

18

It is illegal to sell, give or otherwise furnish tobacco products to anyone under the age of 18 years.[168]

 India

None

18

It is illegal to sell cigarettes or any other tobacco product to a person under the age of 18 years. It is illegal to sell tobacco within a radius of one hundred yards of any educational institution.[169]

 Indonesia

None

18

It is illegal to sell and supply tobacco products to pregnant women or anyone under the age of 18 years.[170]

 Iran

None

18

It is illegal to sell and supply tobacco products to anyone under the age of 18 years. Violation will result in confiscation of tobacco from the minor and a fine for the salesperson.[171]

 Iraq

14

 Israel

None

18

It is illegal to sell tobacco products to a minor.No minimum age prior to 12 November 2004.[172]

 Jordan

None18 (consumption of water pipes on premises)

18

It is illegal to sell tobacco to a minor. It is also illegal to provide water pipes in cafes, restaurants and similar places.[173]

 Japan

20

It is illegal to supply tobacco to persons under 20 years. It is punishable by a  ¥10,000 fine.[174]

 Kazakhstan

None

18

[175]

 Kuwait

None

21

It is illegal to sell or give tobacco products to anyone under the age of 21 years.[176]

 Kyrgyzstan

None

18

No minor shall sell or be sold tobacco products.[177]

 Lebanon

18

18

It is illegal to sell or distribute tobacco to a minor.[178]

 Macau

None

18

It is illegal to sell tobacco to a person under the age of 18 years. It is not illegal for a minor to smoke or to obtain tobacco from a person of the legal age.[179]

 Malaysia

None

18

It is illegal to sell tobacco products to a minor.[180]

 Maldives

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years. The retailer must ensure that the buyer is at least 18 years of age. Furthermore, a clearly legible notice has to be displayed at point of sale stating that tobacco sales to minors are illegal.[181]

 Mongolia

21

   Nepal

None

18

It is illegal to sell or distribute tobacco products to minors and pregnant women.[182]

 North Korea

None

17

It is illegal to sell tobacco products to a minor.[183] (The tobacco law does not define the word "minor", but age of majority is reached at the age of 17 years).

 Oman

18

 Pakistan

None

18

It is illegal to sell tobacco to a person under the age of 18 years. A clearly legible notice with the sale restriction has to be placed at point of sale.[184]

 Palestine

14

 Philippines

18

Only people over 18 may buy cigarettes and tobacco due to the "STOP for Health Act". (Stop Tobacco and Other Products for Health)[185]

 Qatar

None

18

It is illegal to sell cigarettes or any other tobacco to a person unter the age of 18 years.[186]

 Saudi Arabia

18

 Singapore

18

Smoking age in Singapore is currently 18, increasing to 19 by 2019 and 21 by 2021.It is illegal to sell or give, directly or indirectly any tobacco product to a person under the age of 18 years. No minor is allowed to consume or possess any tobacco product in public.[187]

 South Korea

19

20

[188]

 Sri Lanka

None

21

It is the law to sell any tobacco product to a person under the age of 21 years.[189]

 Syria

None

18

It is unlawful to sell or give tobacco to a person under the age of 18 years.[190]

 Taiwan

18

It is illegal to sell or provide tobacco to persons under the age of 18 years. It is illegal to force, induce or use other means to cause a pregnant woman to smoke. It is illegal for a pregnant women or a minor to smoke. No penalty is provided for pregnant women who smoke.[191]

 Tajikistan

14

 Thailand

None

18

[192]

 Turkmenistan

Illegal

In January 2016, President Gurbanguly Berdymukhammedow reportedly banned tobacco sales in Turkmenistan.[193]

 United Arab Emirates

18

 Vietnam

18

It is illegal for people less than 18 years of age use, buy, and sell tobacco products. It is illegal to sell and supply tobacco product to people less than 18 years of age.[194]

 Yemen

14¿₡₯₠

text: Europe[edit]

text:
Country

De jure

Notes

Smoking age

Purchase age

 Albania

None

18

It is illegal to sell or supply tobacco products to minors under the age of 18 years.[195]

 Armenia

None

18

It is illegal to sell tobacco products anyone under the age of 18 years. Minors may not sell tobacco products.[196]No minimum age prior to 24 December 2004.

 Austria

16

The minimum age is regulated by each federal state, but is nationwide 16 years. It is illegal in every state to sell or give tobacco products to a person under the age of 16 years as well as the consumption by a person under the age of 16 years in any public place.[197]

 Azerbaijan

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years. The packaging of tobacco products must contain a warning that sale to minors is prohibited.[198]No minimum age prior to 1 January 2002.

 Belarus

None

18

(Decree No. 28 of 2002 Section 32. "It is banned to sell tobacco products to citizens (by citizens) of the Republic of Belarus, foreign citizens and individuals with no citizenship under 18 years old.")[199]

 Belgium

None

16

("It is forbidden to sell tobacco products to young people under the age of 16 and advertising for tobacco products is forbidden.")[200]

 Bosnia and Herzegovina

18

It is illegal to sell and gift tobacco products to anyone under the age of 18 years. It is illegal for minors under the age of 18 years to gift, sell and consume tobacco products.[201]The minimum age was 15 years prior to 28 September 2004.No minimum age prior to 9 March 1998.[202]

 Bulgaria

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years.[203]

 Croatia

None

18

It is illegal to sell tobacco products to minors. It is the responsibility of any salesperson to ensure that no tobacco is sold to minors and therefore to request an ID to make sure that the purchaser is at least 18 years of age. Minors may not sell tobacco products.[204]

 Cyprus

None

18

It is illegal to sell or otherwise provide tobacco products to a minor. "(…)any  person  who  provides  a  tobacco product  to  a  minor  is  guilty  of  offense  and  in  any  case  of  his/her  conviction, he/she shall  be subject to a penalty not exceeding one thousand pounds or to incarceration not exceeding six months and/or to both penalties."[205]

 Czech Republic

None

18

Selling tobacco products to anyone under 18 is prohibited. Sale of tobacco products and tobacco through vending machines is permitted if the tobacco purchase age is not violated. The seller shall place a clearly visible notice displaying the sale restrictions of tobacco to person under the age of 18. A person selling tobacco must be 18 years or older, unless the minor is preparing for a future career in the hotel or tourism industry, as a cook-waiter or salesman. However, it is very easy to get tobacco products for minors as many sellers don't check the age.[206]The minimum age was 16 years prior to 2 September 1999.[207]

 Denmark

None

18

The minimum age was 16 years prior to 1 September 2008.[208]

 Estonia

18

The minimum age to purchase tobacco products or to smoke in public is set at 18. Minors may not be in possession of, or handle tobacco products.[209]

 Finland

18

Prior to October 2010 it was not illegal for minors to smoke in public.The minimum age was 16 years prior to 1 March 1995.[210]

 France

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years. Minors under the age of 18 years may not smoke in any school or on school property.[211] Vending machines outside a tobacco shop is prohibited.Prior to 21 July 2009 the minimum age to purchase tobacco products was 16 years of age.

 Georgia

None

18

It is illegal to sell tobacco products to minors under the age of 18.[212]

 Germany

18

The Protection of Young Persons Act states that children and young people under 18 years of age shall not be sold tobacco products nor should they be permitted to smoke in public. This does not apply to married adolescents.[213]Minimum age was 18 from 10 June 1943 until 1 January 1952.[214]Minimum age was 16 from 1 January 1952 to 1 September 2007.[215]

 Gibraltar

18

It is illegal to sell and furnish tobacco products to anyone under the age of 18 years. Any police officer may confiscate tobacco from a minor in public.[216]The minimum age was 16 years prior to 7 July 2006.[217]

 Greece

None

18

It is illegal to sell tobacco to minors.[218]

 Hungary

18

It is illegal to sell or supply tobacco products to anyone under the age of 18. It is illegal to smoke under the age of 18. The sale of tobacco is prohibited within 200 m of schools and health care units.

 Iceland

None

18

It is illegal to sell or deliver tobacco products to anyone under the age of 18 years. Minors may not handle or sell tobacco products.[219]No minimum age prior to 1 January 1985.The minimum age was 16 years from 1 January 1985 to 1 October 1996.[220]

 Ireland

18

The sale of tobacco to persons under 18 is illegal. It is illegal to buy or smoke cigarettes if you are under the age of 18.[221]The minimum age was 16 years prior to 27 March 2002.[222]

 Italy

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years. Violation is punished with a fine between €250.00 and €1000.00. If the law is violated more than once the fine is increased to €500.00 and €2,000.00 and a revocation of the tobacco license for at least 3 months.[223][224]Minimum age for electronic cigarettes was 16 prior to 1 May 2013.[225]

 Kosovo[a]

None

[226]

 Latvia

18

The sale of tobacco products to persons under the age of 18 is prohibited.[227]

 Liechtenstein

16

It is illegal for anyone under the age of 16 to possess or consume tobacco products.[228]

 Lithuania

18

No minimum age to smoke prior to 1 May 2015.

 Luxembourg

None

18

It is illegal to sell tobacco products to anyone under the age of 18 years.[229][230]No minimum age prior to 1 January 2006.Minimum purchase age increased from 16 to 18 on 1 August 2017.

 Macedonia

None

18

It is illegal to sell tobacco to anyone under the age of 18 years.[231]

 Malta

None

18

"No person shall sell, supply or distribute by way of compensation or otherwise, any cigarettes, cigars, tobacco, tobacco products or smoking requisites to any person who is under the age of 18 years, or in any manner induce such person to smoke."[232]

 Moldova

None

18

It is illegal to sell tobacco to anyone under the age of 18 years.[233]

 Montenegro

None

18

It is illegal to sell tobacco to anyone under the age of 18. A poster with the sale restrictions must be placed at point of sale.[234]

 Netherlands

None

18

The sale of tobacco to persons under 18 is illegal.[235] Smoking of tobacco is prohibited by law in all public buildings and in public transport. As of 1 January 2004 every employee has the right to work in a smoke-free environment. All forms of tobacco advertising, promotion or sponsorship are prohibited.  Smoking remains prevalent in the Netherlands despite these efforts. Tobacco can be bought at every supermarket and at other stores.

 Norway

None

18

No age limit for use of tobacco but no sales of cigarettes or Swedish snus to people under 18 by law.[236] Vending machines are only allowed when they are cited inside an approved store, with a demand of buying a receipt from the cashier first.[236] and imitation tobacco products are not allowed. Cigarette commercials are also strictly forbidden by law. As of June 2004, smoking is prohibited in all public places, including restaurants, pubs and work places.

 Poland

None

18

Minors are not allowed to buy tobacco products.[237]

 Portugal

18

It is illegal to sell or give any tobacco product to a minor as well as the consumption of a tobacco product in any public place by a minor. There is a proposition to ban vending machines in places accessible to people younger than 18.[238] Minimum age was 16 prior to 1 January 2008.

 Romania

None

18

There is a ban on sale of tobacco to those younger than 18. Vending machines selling tobacco are banned. There is no minimum legal age of smoking.

 Russia

None

18

Retail sales of tobacco products to any person under the age of 18 years are an offence.[239]

 Serbia

None

18

The sale to persons under 18 is prohibited. Contrary to that, a lot of salesmen sell cigarettes to minors in Serbia. Acquiring tobacco products is very easy for minors despite the law.

 Slovakia

None

18

Tobacco sales to under 18 year olds are prohibited.[240]

 Slovenia

None

18

It is illegal to sell tobacco to anyone under the age of 18. ID-Card or passport has to be shown if requested.[241]

 Spain

None

18

It is illegal to sell any tobacco product or other smoking substances (e.g. electronic cigarettes) to a person under the age of 18 years.[242]Minimum age was 16 in most regions prior to 1 January 2006.

 Sweden

None

18

It is illegal to sell or commercially distribute tobacco to a person under the age of 18 years.[243]No minimum age prior to 1 January 1997.

  Switzerland

Regulations by canton:

States/territories

Smoking age

Purchase age

Notes

 Aargau

None

16

It is an offence to sell or supply (except for Parents) any tobacco product to a person under 16 years of age.[244]

 Appenzell Ausserrhoden

None

16

It is an offence to sell or supply any tobacco product to a person under 16 years of age.[245]

 Appenzell Innerrhoden

None

No cantonal regulation towards sale and supply of tobacco products to minors.[246]

 Basel-Landschaft

None

18

Selling any tobacco product to a minor is unlawful. If a customer appears to be under the age of 18 years the salesperson must check a valid ID.[247]

 Basel-Stadt

None

18

Selling any tobacco product to a minor is unlawful. If a customer appears to be under the age of 18 years the salesperson must check a valid ID.[248]

 Bern

None18 (to enter smoking facility or premises)

18

Selling or giving any tobacco product to a minor is unlawful. If a customer appears to be under the age of 18 years the salesperson must check a valid ID.[249]

 Fribourg

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful. If a customer appears to be under the age of 16 years the salesperson must check a valid ID.[250]

 Geneva

None

No cantonal regulation towards sale and supply of tobacco products to minors.[246]

 Glarus

None

16

Selling any tobacco product to a person under the age of 16 is unlawful. If a customer appears to be under the age of 16 years the salesperson must check a valid ID.[251]

 Graubünden

None

16

[252]

 Jura

None

18

It is illegal to sell or supply tobacco to a minor.[253]

 Luzern

None

16

Selling any tobacco product to a person under the age of 16 is unlawful.[254]

 Neuchâtel

None

18

Selling any tobacco product to a minor is unlawful.[255]

 Nidwalden

None

18

Selling any tobacco product to a minor is unlawful.[256]

 Obwalden

None

No cantonal regulation towards sale and supply of tobacco products to minors.[246]

 Schaffhausen

None

18

Selling any tobacco product to a minor is unlawful.[246]

 Schwyz

None

No cantonal regulation towards sale and supply of tobacco products to minors.[246]

 Solothurn

None

16

Selling any tobacco product to a person under the age of 16 is unlawful.[257]

 St. Gallen

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful. If a customer appears to be under the age of 16 years the salesperson must check a valid ID.[258]

 Thurgau

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful. If a customer appears to be under the age of 16 years the salesperson must check a valid ID.[259]

 Ticino

None

18

Selling any tobacco product to a minor is unlawful.[246]

 Uri

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful.[260]

 Valais

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful. Currently the cantonal government is planning to raise the minimum age to 18 years.[261]

 Vaud

None

18

Selling any tobacco product to a minor is unlawful.[262]

 Zug

None

18

Selling any tobacco product to a minor is unlawful.[263]

 Zürich

None

16

Selling or supplying any tobacco product to a person under the age of 16 is unlawful. If a customer appears to be under the age of 16 years the salesperson must check a valid ID.[264]

 Turkey

None

18

 Ukraine

14

18

 United Kingdom

18 (purchase de jure) 16 (public possession & purchase de facto)

 England and  Wales:It is illegal to sell tobacco to anyone under the age of 18.[265] The minimum age to smoke in public is 16 and authorities have the duty to seize any tobacco or cigarette papers in the possession of any person apparently under the age of 16.[266]Minimum age to purchase was 16 from 1908 to 1 October 2007.
No minimum age prior to 1908.

18

 Scotland:  A person who sells a tobacco product or cigarette papers to a person under the age of 18 commits an offence. Any person under the age of 18 who buys or attempts to buy a tobacco product or cigarette papers commits an offence as well as an adult who knowlingly buys a tobacco product or cigarette papers on behalf of a person under the age of 18.[267] Any constable who has reasonable grounds for suspecting that a person in a public place is under the age of 18, and in possession of a tobacco product or cigarette papers may require the person to surrender the tobacco product.[268]Minimum age was 16 prior to 30 September 2007.

18

Northern Ireland:A person who sells to a person under the age of 18 any tobacco or cigarette papers, whether for his own use or not, shall be guilty of an offence. A member of the Police Service of Northern Ireland may seize any tobacco or cigarette papers in the possession of any person apparently under the age of 18 whom he finds smoking in any street or public place.[269]Minimum age was 16 prior to 1 September 2008.

text: ^ Disputed.

text: Oceania[edit]

text:
Country

De jure

Notes

Smoking age

Purchase age

 Australia

Regulations by state/territory:

Province/territory

Smoking age

Purchase age

Notes

 Australian Capital Territory

None

18

It is illegal to sell tobacco products to a person under the age of 18 years.[270] Further it is illegal to buy a tobacco product for a minor.[271]

 New South Wales

None

18

It is illegal to sell any tobacco or non-tobacco smoking product to a person who is under the age of 18 years.[272]

 Northern Territory

None

18

It is illegal to sell any tobacco product to a minor or on behalf of a minors. It is illegal to smoke in a vehicle with a person under the age of 18 years present.[273][274]

 Queensland

None

18

It is illegal for an adult to supply a tobacco product to a person under the age of 18 years; however, a responsible adult for a child does not commit an offence by supplying a smoking product to the child.[275]

 South Australia

None

18

It is an offence to supply any tobacco product to a person under the age of 18 years.[276]

 Tasmania

None

18

It is illegal to sell or supply tobacco to a person under the age of 18 years.Minimum age was 16 prior to 1 January 1997.[277]

 Victoria

None

18

It is illegal to supply tobacco to a minor. Smoking in a vehicle with a person under 18 present is an offence.[278]

 Western Australia

None

18

It is illegal to sell, deliver or supply tobacco or smoking implement to a minor. Purchase on behalf of people under 18 prohibited.[279][280]

 Fiji

None

18

It is illegal to sell and supply tobacco to a minor.[281]

 Micronesia, Federated States of

18

It is illegal to sell and supply tobacco to a minor.

 New Zealand

None

18

It is illegal to sell and supply tobacco to a minor under 18 years.[282]No minimum age prior to 1903.Minimum age of 15 years from 1903 to 1988.Minimum age of 16 years from 1988 to 1998.[283][284]'

 Palau

None

1821 (Only rolling papers and elaus)

It is illegal to sell or give tobacco products to anyone under the age of 18 years. If the purchaser appears to be under the age of 30 years, ID must be checked before sale. It is illegal to employ anyone under the age of 21 handling tobacco products. It is illegal to sell rolling papers and elaus to anyone under the age of 21 years.[285]

 Papua New Guinea

None

18

It is illegal to sell or give tobacco to a person under the age of 18 years.[286]

 Samoa

21

It is illegal to sell tobacco to anyone under the age of 21 years. It is not illegal for a person under the age of 21 years to possess or smoke tobacco in public.[287]

 Solomon Islands

None

18

It is illegal to sell, give or otherwise supply tobacco to a minor.[288]

 Tonga

None

18

It is illegal to sell, give or otherwise supply tobacco to a minor.[289]

 Tokelau

16

It is illegal for a person under 16 to smoke tobacco.[290]

 Vanuatu

18

It is illegal to sell tobacco to a persons under 18. It is illegal for persons under 18 to smoke tobacco.[291]

text: Historical regulations[edit]

text:
Minimum age to purchase tobacco in the European Union as of 1995:   Minimum age is 18  Minimum age is 16  No minimum age

Minimum age to purchase tobacco in the USA as of 1989:[292]   Minimum age is 19  Minimum age is 18  Minimum age is 17  Minimum age is 16  No minimum age

tag: ul


document_title: Gold standard

question_text: when did the united states drop the gold standard

question_tokens: when did the united states drop the gold standard

text: Gold standard

text: History

text: This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (July 2010) (Learn how and when to remove this template message)

text: Origin

text: The gold specie standard arose from the widespread acceptance of gold as currency.[5] Various commodities have been used as money; typically, the one that loses the least value over time becomes the accepted form.[6] Chemically, gold is of all major metals the one most resistant to corrosion.

tag: p

text: The use of gold as money began thousands of years ago in Asia Minor.[7]

text: During the early and high Middle Ages, the Byzantine gold solidus, commonly known as the bezant, was used widely throughout Europe and the Mediterranean. However, as the Byzantine Empire's economic influence declined, so too did the use of the bezant.[8] In its place, European territories chose silver as their currency over gold, leading to the development of silver standards.

text: Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa, circa CE 757–796.[9] Similar coins, including Italian denari, French deniers, and Spanish dineros circulated in Europe. Spanish explorers discovered silver deposits in Mexico in 1522 and at Potosí in Bolivia in 1545.[10] International trade came to depend on coins such as the Spanish dollar, the Maria Theresa thaler, and later, the United States trade dollar.

text: In modern times, the British West Indies was one of the first regions to adopt a gold specie standard. Following Queen Anne's proclamation of 1704, the British West Indies gold standard was a de facto gold standard based on the Spanish gold doubloon. In 1717, Sir Isaac Newton, the master of the Royal Mint, established a new mint ratio between silver and gold that had the effect of driving silver out of circulation and putting Britain on a gold standard.[11]

text: A formal gold specie standard was first established in 1821, when Britain adopted it following the introduction of the gold sovereign by the new Royal Mint at Tower Hill in 1816. The United Province of Canada in 1853, Newfoundland in 1865, and the United States and Germany (de jure) in 1873 adopted gold. The United States used the eagle as its unit, Germany introduced the new gold mark, while Canada adopted a dual system based on both the American gold eagle and the British gold sovereign.

text: Australia and New Zealand adopted the British gold standard, as did the British West Indies, while Newfoundland was the only British Empire territory to introduce its own gold coin. Royal Mint branches were established in Sydney, Melbourne and Perth for the purpose of minting gold sovereigns from Australia's rich gold deposits.

text: The gold specie standard came to an end in the United Kingdom and the rest of the British Empire with the outbreak of World War I.

text: Silver

text: From 1750 to 1870, wars within Europe as well as an ongoing trade deficit with China (which sold to Europe but had little use for European goods) drained silver from the economies of Western Europe and the United States. Coins were struck in smaller and smaller numbers, and there was a proliferation of bank and stock notes used as money.

text: United Kingdom

text: In the 1790s, the United Kingdom suffered a silver shortage. It ceased to mint larger silver coins and instead issued "token" silver coins and overstruck foreign coins. With the end of the Napoleonic Wars, the Bank of England began the massive recoinage programme that created standard gold sovereigns, circulating crowns, half-crowns and eventually copper farthings in 1821. The recoinage of silver after a long drought produced a burst of coins. The United Kingdom struck nearly 40 million shillings between 1816 and 1820, 17 million half crowns and 1.3 million silver crowns.

text: The 1819 Act for the Resumption of Cash Payments set 1823 as the date for resumption of convertibility, which was reached by 1821. Throughout the 1820s, small notes were issued by regional banks. This was restricted in 1826, while the Bank of England was allowed to set up regional branches. In 1833 however, Bank of England notes were made legal tender and redemption by other banks was discouraged. In 1844, the Bank Charter Act established that Bank of England notes were fully backed by gold and they became the legal standard. According to the strict interpretation of the gold standard, this 1844 act marked the establishment of a full gold standard for British money.

text: United States

text: In the 1780s, Thomas Jefferson, Robert Morris and Alexander Hamilton recommended to Congress the value of a decimal system. This system would also apply to monies in the United States. The question was what type of standard: gold, silver or both.[12] The United States adopted a silver standard based on the Spanish milled dollar in 1785.

text: International

text: From 1860 to 1871 various attempts to resurrect bi-metallic standards were made, including one based on the gold and silver franc; however, with the rapid influx of silver from new deposits, the expectation of scarce silver ended.

text: The interaction between central banking and currency basis formed the primary source of monetary instability during this period. The combination of a restricted supply of notes, a government monopoly on note issuance and indirectly, a central bank and a single unit of value produced economic stability. Deviation from these conditions produced monetary crises.

text: Devalued notes or leaving silver as a store of value caused economic problems. Governments, demanding specie as payment, could drain the money out of the economy. Economic development expanded need for credit. The need for a solid basis in monetary affairs produced a rapid acceptance of the gold standard in the period that followed.

text: Japan

text: Following Germany's decision after the 1870–1871 Franco-Prussian War to extract reparations to facilitate a move to the gold standard, Japan gained the needed reserves after the Sino-Japanese War of 1894–1895. For Japan, moving to gold was considered vital for gaining access to Western capital markets.[13]

text: Bimetallic standard

text: US: Pre-Civil War

text: In 1792, Congress passed the Mint and Coinage Act. It authorized the federal government's use of the Bank of the United States to hold its reserves, as well as establish a fixed ratio of gold to the U.S. dollar. Gold and silver coins were legal tender, as was the Spanish real. In 1792 the market price of gold was about 15 times that of silver.[12] Silver coins left circulation, exported to pay for the debts taken on to finance the American Revolutionary War. In 1806 President Jefferson suspended the minting of silver coins. This resulted in a derivative silver standard, since the Bank of the United States was not required to fully back its currency with reserves. This began a long series of attempts by the United States to create a bi-metallic standard.

text: The intention was to use gold for large denominations, and silver for smaller denominations. A problem with bimetallic standards was that the metals' absolute and relative market prices changed. The mint ratio (the rate at which the mint was obligated to pay/receive for gold relative to silver) remained fixed at 15 ounces of silver to 1 ounce of gold, whereas the market rate fluctuated from 15.5 to 1 to 16 to 1. With the Coinage Act of 1834, Congress passed an act that changed the mint ratio to approximately 16 to 1. Gold discoveries in California in 1848 and later in Australia lowered the gold price relative to silver; this drove silver money from circulation because it was worth more in the market than as money.[14] Passage of the Independent Treasury Act of 1848 placed the U.S. on a strict hard-money standard. Doing business with the American government required gold or silver coins.

text: Government accounts were legally separated from the banking system. However, the mint ratio (the fixed exchange rate between gold and silver at the mint) continued to overvalue gold. In 1853, the US reduced the silver weight of coins to keep them in circulation and in 1857 removed legal tender status from foreign coinage. In 1857 the final crisis of the free banking era began as American banks suspended payment in silver, with ripples through the developing international financial system. Due to the inflationary finance measures undertaken to help pay for the US Civil War, the government found it difficult to pay its obligations in gold or silver and suspended payments of obligations not legally specified in specie (gold bonds); this led banks to suspend the conversion of bank liabilities (bank notes and deposits) into specie. In 1862 paper money was made legal tender. It was a fiat money (not convertible on demand at a fixed rate into specie). These notes came to be called "greenbacks".[14]

text: US: Post-Civil War

text: After the Civil War, Congress wanted to reestablish the metallic standard at pre-war rates. The market price of gold in greenbacks was above the pre-War fixed price ($20.67 per ounce of gold) requiring deflation to achieve the pre-War price. This was accomplished by growing the stock of money less rapidly than real output. By 1879 the market price matched the mint price of gold. The coinage act of 1873 (also known as the Crime of ‘73) demonetized silver. This act removed the 412.5 grain silver dollar from circulation. Subsequently silver was only used in coins worth less than $1 (fractional currency). With the resumption of convertibility on June 30, 1879 the government again paid its debts in gold, accepted greenbacks for customs and redeemed greenbacks on demand in gold. Greenbacks were therefore perfect substitutes for gold coins. During the latter part of the nineteenth century the use of silver and a return to the bimetallic standard were recurrent political issues, raised especially by William Jennings Bryan, the People's Party and the Free Silver movement . In 1900 the gold dollar was declared the standard unit of account and a gold reserve for government issued paper notes was established. Greenbacks, silver certificates, and silver dollars continued to be legal tender, all redeemable in gold.[14]

text: Fluctuations in the US gold stock, 1862–1877

text:
US gold stock

1862
59 tons

1866
81 tons

1875
50 tons

1878
78 tons

text: The US had a gold stock of 1.9 million ounces (59 t) in 1862. Stocks rose to 2.6 million ounces (81 t) in 1866, declined in 1875 to 1.6 million ounces (50 t) and rose to 2.5 million ounces (78 t) in 1878. Net exports did not mirror that pattern. In the decade before the Civil War net exports were roughly constant; postwar they varied erratically around pre-war levels, but fell significantly in 1877 and became negative in 1878 and 1879. The net import of gold meant that the foreign demand for American currency to purchase goods, services, and investments exceeded the corresponding American demands for foreign currencies. In the final years of the greenback period (1862–1879), gold production increased while gold exports decreased. The decrease in gold exports was considered by some to be a result of changing monetary conditions. The demands for gold during this period were as a speculative vehicle, and for its primary use in the foreign exchange markets financing international trade. The major effect of the increase in gold demand by the public and Treasury was to reduce exports of gold and increase the Greenback price of gold relative to purchasing power.[15]

text: Gold exchange standard

text: This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2013) (Learn how and when to remove this template message)

text: Towards the end of the 19th century, some silver standard countries began to peg their silver coin units to the gold standards of the United Kingdom or the United States. In 1898, British India pegged the silver rupee to the pound sterling at a fixed rate of 1s 4d, while in 1906, the Straits Settlements adopted a gold exchange standard against sterling, fixing the silver Straits dollar at 2s 4d.

text: Around the start of the 20th century, the Philippines pegged the silver peso/dollar to the U.S. dollar at 50 cents. This move was assisted by the passage of the Philippines Coinage Act by the United States Congress on March 3, 1903.[16] Around the same time Mexico and Japan pegged their currencies to the dollar. When Siam adopted a gold exchange standard in 1908, only China and Hong Kong remained on the silver standard.

text: When adopting the gold standard, many European nations changed the name of their currency, for instance from Daler (Sweden and Denmark) or Gulden (Austria-Hungary) to Crown, since the former names were traditionally associated with silver coins and the latter with gold coins.

text: Impact of World War I

text: Governments with insufficient tax revenue suspended convertibility repeatedly in the 19th century. The real test, however, came in the form of World War I, a test which "it failed utterly" according to economist Richard Lipsey.[5]

text: By the end of 1913, the classical gold standard was at its peak but World War I caused many countries to suspend or abandon it.[17] According to Lawrence Officer the main cause of the gold standard’s failure to resume its previous position after World War 1 was “the Bank of England's precarious liquidity position and the gold-exchange standard.” A run on sterling caused Britain to impose exchange controls that fatally weakened the standard; convertibility was not legally suspended, but gold prices no longer played the role that they did before.[18] In financing the war and abandoning gold, many of the belligerents suffered drastic inflations. Price levels doubled in the US and Britain, tripled in France and quadrupled in Italy. Exchange rates changed less, even though European inflations were more severe than America’s. This meant that the costs of American goods decreased relative to those in Europe. Between August 1914 and spring of 1915, the dollar value of US exports tripled and its trade surplus exceeded $1 billion for the first time.[19]

text: Ultimately, the system could not deal quickly enough with the large balance of payments deficits and surpluses; this was previously attributed to downward wage rigidity brought about by the advent of unionized labor, but is now considered as an inherent fault of the system that arose under the pressures of war and rapid technological change. In any case, prices had not reached equilibrium by the time of the Great Depression, which served to kill off the system completely.[5]

text: For example, Germany had gone off the gold standard in 1914, and could not effectively return to it because War reparations had cost it much of its gold reserves. During the Occupation of the Ruhr the German central bank (Reichsbank) issued enormous sums of non-convertible marks to support workers who were on strike against the French occupation and to buy foreign currency for reparations; this led to the German hyperinflation of the early 1920s and the decimation of the German middle class.

text: The US did not suspend the gold standard during the war. The newly created Federal Reserve intervened in currency markets and sold bonds to “sterilize”[vague] some of the gold imports that would have otherwise increased the stock of money.[citation needed] By 1927 many countries had returned to the gold standard.[14] As a result of World War 1 the United States, which had been a net debtor country, had become a net creditor by 1919.[20]

text: Gold bullion replaces gold specie as standard

text: The gold specie standard ended in the United Kingdom and the rest of the British Empire at the outbreak of World War I, when Treasury notes replaced the circulation of gold sovereigns and gold half sovereigns. Legally, the gold specie standard was not repealed. The end of the gold standard was successfully effected by the Bank of England through appeals to patriotism urging citizens not to redeem paper money for gold specie. It was only in 1925, when Britain returned to the gold standard in conjunction with Australia and South Africa that the gold specie standard was officially ended.

text: The British Gold Standard Act 1925 both introduced the gold bullion standard and simultaneously repealed the gold specie standard. The new standard ended the circulation of gold specie coins. Instead, the law compelled the authorities to sell gold bullion on demand at a fixed price, but "only in the form of bars containing approximately four hundred ounces troy [12 kg] of fine gold".[21][22] John Maynard Keynes, citing deflationary dangers, argued against resumption of the gold standard.[23]

text: Many other countries followed Britain in returning to the gold standard, this was followed by a period of relative stability but also deflation.[24] This state of affairs lasted until the Great Depression (1929–1939) forced countries off the gold standard. In September 19, 1931, speculative attacks on the pound forced Britain to abandon the gold standard. Loans from American and French Central Banks of £50,000,000 were insufficient and exhausted in a matter of weeks, due to large gold outflows across the Atlantic.[25][26][27] The British benefited from this departure. They could now use monetary policy to stimulate the economy. Australia and New Zealand had already left the standard and Canada quickly followed suit.

text: The interwar partially backed gold standard was inherently unstable, because of the conflict between the expansion of liabilities to foreign central banks and the resulting deterioration in the Bank of England's reserve ratio. France was then attempting to make Paris a world class financial center, and it received large gold flows as well.[28]

text: In May 1931 a run on Austria's largest commercial bank caused it to fail. The run spread to Germany, where the central bank also collapsed. International financial assistance was too late and in July 1931 Germany adopted exchange controls, followed by Austria in October. The Austrian and German experiences, as well as British budgetary and political difficulties, were among the factors that destroyed confidence in sterling, which occurred in mid-July 1931. Runs ensued and the Bank of England lost much of its reserves.

text: Depression and World War II

text: Great Depression

text: Some economic historians, such as Barry Eichengreen, blame the gold standard of the 1920s for prolonging the economic depression which started in 1929 and lasted for about a decade.[30] In the United States, adherence to the gold standard prevented the Federal Reserve from expanding the money supply to stimulate the economy, fund insolvent banks and fund government deficits that could "prime the pump" for an expansion. Once off the gold standard, it became free to engage in such money creation. The gold standard limited the flexibility of the central banks' monetary policy by limiting their ability to expand the money supply. In the US, the central bank was required by the Federal Reserve Act (1913) to have gold backing 40% of its demand notes.[31] Others including former Federal Reserve Chairman Ben Bernanke and Nobel Prize-winner Milton Friedman place the blame for the severity and length of the Great Depression at the feet of the Federal Reserve, mostly due to the deliberate tightening of monetary policy even after the gold standard.[32] They blamed the US major economic contraction in 1937 on tightening of monetary policy resulting in higher cost of capital, weaker securities markets, reduced net government contribution to income, the undistributed profits tax and higher labor costs.[33] The money supply peaked in March 1937, with a trough in May 1938.[34]

text: Higher interest rates intensified the deflationary pressure on the dollar and reduced investment in U.S. banks. Commercial banks converted Federal Reserve Notes to gold in 1931, reducing its gold reserves and forcing a corresponding reduction in the amount of currency in circulation. This speculative attack created a panic in the U.S. banking system. Fearing imminent devaluation many depositors withdrew funds from U.S. banks.[35] As bank runs grew, a reverse multiplier effect caused a contraction in the money supply.[36] Additionally the New York Fed had loaned over $150 million in gold (over 240 tons) to European Central Banks. This transfer contracted the US money supply. The foreign loans became questionable once Britain, Germany, Austria and other European countries went off the gold standard in 1931 and weakened confidence in the dollar.[37]

text: The forced contraction of the money supply resulted in deflation. Even as nominal interest rates dropped, inflation-adjusted real interest rates remained high, rewarding those who held onto money instead of spending it, further slowing the economy.[38] Recovery in the United States was slower than in Britain, in part due to Congressional reluctance to abandon the gold standard and float the U.S. currency as Britain had done.[39]

text: In the early 1930s, the Federal Reserve defended the dollar by raising interest rates, trying to increase the demand for dollars. This helped attract international investors who bought foreign assets with gold.[35]

text: Congress passed the Gold Reserve Act on 30 January 1934; the measure nationalized all gold by ordering Federal Reserve banks to turn over their supply to the U.S. Treasury. In return the banks received gold certificates to be used as reserves against deposits and Federal Reserve notes. The act also authorized the president to devalue the gold dollar. Under this authority the president, on 31 January 1934, changed the value of the dollar from $20.67 to the troy ounce to $35 to the troy ounce, a devaluation of over 40%.

text: Other factors in the prolongation of the Great Depression include trade wars and the reduction in international trade caused by barriers such as Smoot–Hawley Tariff in the US and the Imperial Preference policies of Great Britain,[40] the failure of central banks to act responsibly,[41] government policies designed to prevent wages from falling, such as the Davis–Bacon Act of 1931, during the deflationary period resulting in production costs dropping slower than sales prices, thereby injuring business profits[42] and increases in taxes to reduce budget deficits and to support new programs such as Social Security. The US top marginal income tax rate went from 25% to 63% in 1932 and to 79% in 1936,[43] while the bottom rate increased over tenfold, from .375% in 1929 to 4% in 1932.[44] The concurrent massive drought resulted in the US Dust Bowl.

text: The Austrian School asserted that the Great Depression was the result of a credit bust.[45] Alan Greenspan wrote that the bank failures of the 1930s were sparked by Great Britain dropping the gold standard in 1931. This act "tore asunder" any remaining confidence in the banking system.[46] Financial historian Niall Ferguson wrote that what made the Great Depression truly 'great' was the European banking crisis of 1931.[47] According to Fed Chairman Marriner Eccles, the root cause was the concentration of wealth resulting in a stagnating or decreasing standard of living for the poor and middle class. These classes went into debt, producing the credit explosion of the 1920s. Eventually the debt load grew too heavy, resulting in the massive defaults and financial panics of the 1930s.[48]

text: World War II

text: Under the Bretton Woods international monetary agreement of 1944, the gold standard was kept without domestic convertibility. The role of gold was severely constrained, as other countries’ currencies were fixed in terms of the dollar. Many countries kept reserves in gold and settled accounts in gold. Still they preferred to settle balances with other currencies, with the American dollar becoming the favorite. The International Monetary Fund was established to help with the exchange process and assist nations in maintaining fixed rates. Within Bretton Woods adjustment was cushioned through credits that helped countries avoid deflation. Under the old standard, a country with an overvalued currency would lose gold and experience deflation until the currency was again valued correctly. Most countries defined their currencies in terms of dollars, but some countries imposed trading restrictions to protect reserves and exchange rates. Therefore, most countries' currencies were still basically inconvertible. In the late 1950s, the exchange restrictions were dropped and gold became an important element in international financial settlements.[14]

text: Bretton Woods

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text: After the Second World War, a system similar to a gold standard and sometimes described as a "gold exchange standard" was established by the Bretton Woods Agreements. Under this system, many countries fixed their exchange rates relative to the U.S. dollar and central banks could exchange dollar holdings into gold at the official exchange rate of $35 per ounce; this option was not available to firms or individuals. All currencies pegged to the dollar thereby had a fixed value in terms of gold.[5]

text: Starting in the 1959–1969 administration of President Charles de Gaulle and continuing until 1970, France reduced its dollar reserves, exchanging them for gold at the official exchange rate, reducing US economic influence. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led U.S. President Richard Nixon to end international convertibility of the U.S. dollar to gold on August 15, 1971 (the "Nixon Shock").

text: This was meant to be a temporary measure, with the gold price of the dollar and the official rate of exchanges remaining constant. Revaluing currencies was the main purpose of this plan. No official revaluation or redemption occurred. The dollar subsequently floated. In December 1971, the “Smithsonian Agreement” was reached. In this agreement, the dollar was devalued from $35 per troy ounce of gold to $38. Other countries' currencies appreciated. However, gold convertibility did not resume. In October 1973, the price was raised to $42.22. Once again, the devaluation was insufficient. Within two weeks of the second devaluation the dollar was left to float. The $42.22 par value was made official in September 1973, long after it had been abandoned in practice. In October 1976, the government officially changed the definition of the dollar; references to gold were removed from statutes. From this point, the international monetary system was made of pure fiat money.

text: Production of gold

text: An estimated total of 174,100 tonnes of gold have been mined in human history, according to GFMS as of 2012. This is roughly equivalent to 5.6 billion troy ounces or, in terms of volume, about 9,261 cubic metres (327,000 cu ft), or a cube 21 metres (69 ft) on a side. There are varying estimates of the total volume of gold mined. One reason for the variance is that gold has been mined for thousands of years. Another reason is that some nations are not particularly open about how much gold is being mined. In addition, it is difficult to account for the gold output in illegal mining activities.[49]

text: World production for 2011 was at 2,700 tonnes. Since the 1950s, annual gold output growth has approximately kept pace with world population growth of around 2x[clarification needed],[50] although far less than world economic growth of some 8x[clarification needed],[51] or some 4x[clarification needed] since 1980.[52]

text: Theory

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text: Commodity money is inconvenient to store and transport in large amounts. Furthermore, it does not allow a government to manipulate the flow of commerce with the same ease that a fiat currency does. As such, commodity money gave way to representative money and gold and other specie were retained as its backing.

text: Gold was a preferred form of money due to its rarity, durability, divisibility, fungibility and ease of identification,[53] often in conjunction with silver. Silver was typically the main circulating medium, with gold as the monetary reserve. Commodity money was anonymous, as identifying marks can be removed. Commodity money retains its value despite what may happen to the monetary authority. After the fall of South Vietnam, many refugees carried their wealth to the West in gold after the national currency became worthless.[citation needed]

text: Under commodity standards currency itself has no intrinsic value, but is accepted by traders because it can be redeemed any time for the equivalent specie. A US silver certificate, for example, could be redeemed for an actual piece of silver.

text: Representative money and the gold standard protect citizens from hyperinflation and other abuses of monetary policy, as were seen in some countries during the Great Depression. Commodity money conversely led to deflation and bank runs.

text: Countries that left the gold standard earlier than other countries recovered from the Great Depression sooner. For example, Great Britain and the Scandinavian countries, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had a silver standard, almost entirely avoided the depression (due to the fact it was then barely integrated into the global economy). The connection between leaving the gold standard and the severity and duration of the depression was consistent for dozens of countries, including developing countries. This may explain why the experience and length of the depression differed between national economies.[54]

text: Variations

text: A full or 100%-reserve gold standard exists when the monetary authority holds sufficient gold to convert all the circulating representative money into gold at the promised exchange rate. It is sometimes referred to as the gold specie standard to more easily distinguish it. Opponents of a full standard consider it difficult to implement, saying that the quantity of gold in the world is too small to sustain worldwide economic activity at or near current gold prices; implementation would entail a many-fold increase in the price of gold.[citation needed] Gold standard proponents have said, "Once a money is established, any stock of money becomes compatible with any amount of employment and real income."[55] While prices would necessarily adjust to the supply of gold, the process may involve considerable economic disruption, as was experienced during earlier attempts to maintain gold standards.[56]

text: In an international gold-standard system (which is necessarily based on an internal gold standard in the countries concerned),[57] gold or a currency that is convertible into gold at a fixed price is used to make international payments. Under such a system, when exchange rates rise above or fall below the fixed mint rate by more than the cost of shipping gold, inflows or outflows occur until rates return to the official level. International gold standards often limit which entities have the right to redeem currency for gold.

text: Advantages

text:
Long-term price stability has been described as one of the virtues of the gold standard.[58] The gold standard makes it difficult for governments to inflate prices through expanding the money supply. Under the gold standard, significant inflation is rare, and hyperinflation is essentially impossible because the money supply can only grow at the rate that the gold supply increases. High inflation under a gold standard is seen only when warfare destroys a large part of an economy, reducing the production of goods, or when a major new gold source becomes available.[59] In the U.S., inflation occurred during the Civil War, which destroyed the economy of the South.[60] Inflation also followed the California Gold Rush that made large amounts of gold available for minting.[61] Historical data shows that the magnitude of short run swings in prices were far higher under the gold standard.[62][58]
The gold standard provides fixed international exchange rates between participating countries and thus reduces uncertainty in international trade. Historically, imbalances between price levels were offset by a balance-of-payment adjustment mechanism called the "price–specie flow mechanism".[59] Gold used to pay for imports reduces the money supply of importing nations, causing deflation, which makes them more competitive, while the importation of gold by net exporters serves to increase their money supply, causing inflation, making them less competitive.[63]
A gold standard does not allow some types of financial repression.[64] Financial repression acts as a mechanism to transfer wealth from creditors to debtors, particularly the governments that practice it. Financial repression is most successful in reducing debt when accompanied by inflation and can be considered a form of taxation.[65][66] In 1966 Alan Greenspan wrote "Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."[67]

text: Disadvantages

text:
The unequal distribution of gold deposits makes the gold standard more advantageous for those countries that produce gold.[68] In 2010 the largest producers of gold, in order, were China, Australia, U.S., South Africa and Russia.[69] The country with the largest unmined gold deposits is Australia.[70]
Some economists believe that the gold standard acts as a limit on economic growth. "As an economy's productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow."[71]
Mainstream economists believe that economic recessions can be largely mitigated by increasing the money supply during economic downturns.[72] A gold standard means that the money supply would be determined by the gold supply and hence monetary policy could no longer be used to stabilize the economy.[73] The gold standard is often blamed for prolonging the Great Depression, as under the gold standard, central banks could not expand credit at a fast enough rate to offset deflationary forces.[74]
Although the gold standard brings long-run price stability, it is historically associated with high short-run price volatility.[58][75] It has been argued by Schwartz, among others, that instability in short-term price levels can lead to financial instability as lenders and borrowers become uncertain about the value of debt.[75]
Deflation punishes debtors.[76][77] Real debt burdens therefore rise, causing borrowers to cut spending to service their debts or to default. Lenders become wealthier, but may choose to save some of the additional wealth, reducing GDP.[78]
The money supply would essentially be determined by the rate of gold production. When gold stocks increase more rapidly than the economy, there is inflation and the reverse is also true.[58][79] The consensus view is that the gold standard contributed to the severity and length of the Great Depression.[80][81]
Hamilton contended that the gold standard is susceptible to speculative attacks when a government's financial position appears weak. Conversely, this threat discourages governments from engaging in risky policy (see moral hazard). For example, the U.S. was forced to contract the money supply and raise interest rates in September 1931 to defend the dollar after speculators forced the UK off the gold standard.[81][82][83][84]
Devaluing a currency under a gold standard would generally produce sharper changes than the smooth declines seen in fiat currencies, depending on the method of devaluation.[85]
Most economists favor a low, positive rate of inflation of around 2%. This reflects fear of deflationary shocks and the belief that active monetary policy can dampen fluctuations in output and unemployment. Inflation gives them room to tighten policy without inducing deflation.[86]
A gold standard provides practical constraints against the measures that central banks might otherwise use to respond to economic crises.[87] Creation of new money reduces interest rates and thereby increases demand for new lower cost debt, raising the demand for money.[88]

text: Gold standard and Bitcoin

text: According to research produced by the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on gold standard, in particular:[89][90]

text:
limited and predictable supply of the anchor of the monetary system
no central bank or monetary authority controls the supply
low or non-existent inflation
virtually no arbitrage costs for international transactions
Governments have less control over their domestic economies
Governments lose seigniorage revenues that they obtain from the ability to almost costlessly create money

text: Edward Hadas and Michael Hiltzik noted that monetary systems based on Bitcoin and gold have some similar disadvantages:

text:
independence from government[91][92]
price declines[91]
less spending during crisis times[91]

text: George Gilder, a proponent of gold standard, proposed breaking "the government monopoly on money" by using a combination of Bitcoin for the internet and treating gold in tax terms as currency.[93][94]

text: Advocates

text: A return to the gold standard was considered by the US Gold Commission back in 1982, but found only minority support.[95] In 2001 Malaysian Prime Minister Mahathir bin Mohamad proposed a new currency that would be used initially for international trade among Muslim nations, using the Islamic gold dinar, defined as 4.25 grams of pure (24-carat) gold. Mahathir claimed it would be a stable unit of account and a political symbol of unity between Islamic nations. This would purportedly reduce dependence on the US dollar and establish a non-debt-backed currency in accord with Sharia law that prohibited the charging of interest.[96] As of 2013[update] the global monetary system continued to rely on the US dollar as the main reserve currency.[97]

text: Former U.S. Federal Reserve Chairman, Alan Greenspan acknowledged he was one of "a small minority" within the central bank that had some positive view on the gold standard.[98] In a 1966 essay he contributed to a book by Ayn Rand, titled "Gold and Economic Freedom", Greenspan argued the case for returning to a 'pure' gold standard; in that essay he described supporters of fiat currencies as "welfare statists" intending to use monetary policy to finance deficit spending.[99] More recently he claimed that by focusing on targeting inflation "central bankers have behaved as though we were on the gold standard", rendering a return to the standard unnecessary.[100]

text: Similarly, economists like Robert Barro argued that whilst some form of "monetary constitution" is essential for stable, depoliticized monetary policy, the form this constitution takes—for example, a gold standard, some other commodity-based standard, or a fiat currency with fixed rules for determining the quantity of money—is considerably less important.[101]

text: The gold standard is supported by many followers of the Austrian School of Economics, free-market libertarians and some supply-siders.[102]

text: US politics

text: In the United States, strict constitutionalists object to the government issuing fiat currency through central banks. Some gold-standard advocates also call for a mandated end to fractional-reserve banking. Many similar alternatives have been suggested, including energy-based currencies, collections of currencies or commodities, with gold as one component.

text: Former congressman Ron Paul is a long-term, high-profile advocate of a gold standard, but has also expressed support for using a standard based on a basket of commodities that better reflects the state of the economy.[103]

text: In 2011 the Utah legislature passed a bill to accept federally issued gold and silver coins as legal tender to pay taxes.[104] As federally issued currency, the coins were already legal tender for taxes, although the market price of their metal content currently exceeds their monetary value. Similar legislation is under consideration in other US states.[105] The bill was initiated by newly elected Republican Party legislators associated with the Tea Party movement and was driven by anxiety over the policies of President Barack Obama.[106]

text: In 2013, the Arizona Legislature passed SB 1439, which would have made gold and silver coin a legal tender in payment of debt, but the bill was vetoed by the Governor.[107]

text: In 2015, some candidates for the 2016 presidential election advocated for a gold standard, based on concern that the Federal Reserve’s attempts to increase economic growth may create inflation. Economic historians did not agree with candidate's assertions that the gold standard would benefit the US economy.[108]

text: Critics

text: In 2012 a poll of 40 U.S. economists in the IGM Economic Experts Panel found that none of them agreed with a claim that a return to the gold standard would result in "price-stability and employment outcomes [that] would be better for the average American." The panel of polled economists included past Nobel Prize winners, former economic advisers to both Republican and Democratic presidents, and senior faculty from Harvard, Chicago, Stanford, MIT, and other well-known research universities. (The specific question posed to the economists was: "If the US replaced its discretionary monetary policy regime with a gold standard, defining a 'dollar' as a specific number of ounces of gold, the price-stability and employment outcomes would be better for the average American.") [3]

text: The economist Allan H. Meltzer of Carnegie Mellon University presented arguments against Ron Paul's advocacy of the gold standard since the 1970s. He sometimes summarizes his opposition by stating simply, "[W]e don’t have the gold standard. It’s not because we don’t know about the gold standard, it’s because we do."[109]