In a response to Duncan, Chai-on writes:
If there is a link "between the value of the national currency and gold (or
some other produced commodity)", there should be no need to a fixed
exchange rate. Because the links are removed, the offical exchange
rate system was introduced.
Michael W.:
The distinction between a gold-standard system, and official exchange rate
system and a floating exchange rate is a matter of degree and vary forms of
interaction between negotiated state interventions and world market forces.
Under the Gold standard, States negotiated parity rates; under official exchange
rates, market forces, including speculation had varying degrees of impact; and
all floating regimes have been partial and 'dirty'. Under no modern system, as
far as I can see, has some abstract labour embodied value of gold played any
role whatsoever.
Yours,
Michael W.