Australian pound: Difference between revisions

In 1914, the British government removed sterling from the gold standard. When it was returned to the gold standard in 1925, the sudden increase in its value (imposed by the nominal gold price) unleashed crushing [[deflation]]ary pressures. Both the initial 1914 [[inflation]] and the subsequent 1926 deflation had far-reaching economic effects throughout the [[British Empire]], Australia and the world. In 1929, as an emergency measure during the [[Great Depression]], Australia left the gold standard, resulting in a devaluation relative to sterling. A variety of pegs to sterling applied until December 1931, when the government devalued the local unit by 20%: £A 1 = £ {{frac|4|5}} stg or 16/– stg (£A 1/5/– = £1 stg).