The Gold Standard was historically used before the 20th century, wherein governments would store and hold sufficient gold reserves to back their currency. This system of fixed exchange rates ensured that the value of currency remained stable and was based on a tangible asset, reducing inflation risks and fostering global trade stability. The collapse of the Gold Standard occurred during the Great Depression, leading most countries to shift to fiat money systems. It is still a reference point in discussions about monetary policy, inflation, and currency stability.