The "gold standard" is a monetary system where a country's currency or paper money has a value directly linked to gold. Under this system, governments agree to convert currency into a specific amount of gold, ensuring that the money supply is tied to the amount of gold held in reserve. This creates stability in currency value and helps prevent inflation. Historically, many countries, including the United States and United Kingdom, used the gold standard until the early 20th century. It was eventually abandoned in favor of fiat currency systems, where money's value is not based on physical commodities but rather on government regulation and trust.