Arthur hadn't been immersed in the achievements of the transport aircraft for too long before a big news broke in Europe.

In fact, this news is also expected. Because since the outbreak of the economic crisis, many countries, including the United Kingdom, the United States, Germany, Italy, and Austria, have suffered quite serious property losses, except for the special case of Australasia, the least affected by the economic crisis is France.

This is a bit peculiar, after all, France can only be regarded as the middle and upper class of the great powers in terms of population and economic size, why did it not suffer deeply in the economic crisis?

Much of this is due to France's aggressive currency devaluation strategy.

First of all, currency depreciation will frantically stimulate exports, continuously create more jobs, boost people's consumption levels, and thus stimulate the growth of domestic demand.

Secondly, the continuous depreciation of the currency will also lead to the continuous rise of prices, which will lead to the continuous decline of the stock market.

This also means that the Paris stock market was already in a downturn before the economic crisis erupted, which is the real reason why the French suffered little impact.

After all, the stock market has fallen to a low level, where can it go further?

Because of the depreciation of the currency, the domestic demand of the French is constantly increasing. This also led to the fact that overproduction in France was not so serious, which was also an important reason to avoid an economic crisis.

What makes other countries even more envious is that the number of unemployed people in France is constantly decreasing, stabilizing at the lowest level of unemployment among the major powers, second only to Australasia.

This is what attracts other countries the most, after all, it is the large number of unemployed people who are causing chaos in countries at the moment.

If the United States had not had tens of millions of unemployed people, the people would not have been so angry with President Coolidge, let alone directly contributed to the impeachment of President Coolidge by the opposition party.

It is precisely because of the benefits of currency depreciation that the British people can't sit still, and the British government is already proposing a plan to devalue the pound and apply for the approval of King George V and the British Parliament.

Naturally, news of the British action on the currency also reached Australasia. To be honest, the Australian dollar and the British pound are highly bound, and the Australian dollar cannot escape if the pound depreciates.

This is also equivalent to causality, the Australian dollar enjoys the benefits of being tied to the pound, and naturally has to suffer the disadvantages of the depreciation of the pound.

However, the depreciation of the Australian dollar is also in Arthur's plan, after all, the current size of the Australian dollar is not enough to support the framework of the world currency, and acting with the pound is the best result.

The current world currency is still up to the pound and the dollar, just in time to deepen the rift between the two superpowers, Britain and the United States.

By the time the British decided to take action against the United States, perhaps the next war would break out.

Until then, Australasia is better not to have any ideas. Even the United States alone, Australasia would not be able to defeat it.

If the United States and the island countries join forces, the dual pressure of the army and navy, even Australasia, may not be able to withstand it.

This is also the benefit of someone behind it, there is a British in advance, anyway, the British have a big business, and they don't care about this little loss.

Australasia is indispensable when the benefits are divided in the future, after all, it is impossible for a British to completely divide the world situation, and an ally like Australasia is needed to stabilize the order.

It was not only the current situation of the French that made the British decide to abandon the gold standard, but also the significant impact of the economic crisis on the British.

As the most powerful country in the world, the British Empire's import-export balance was generally positive, and the profits were enough to tempt all countries.

But from the beginning of the economic crisis, the export volume of the British Empire plummeted, and the balance of import and export trade instantly turned upside down.

Even if the British have a big business, they still can't afford to lose hundreds of millions of pounds in the foreign trade balance.

The exchange rate between the pound and the dollar has risen from 1 to 4.95 to 3.85, which makes it difficult to maintain the pound under the gold standard.

Because the gold standard was first established by the United Kingdom, coupled with the strength of the British Empire in the past hundred years, the currencies of various countries are more or less pegged to the pound sterling.

If there is a problem with the pound, there will be a problem with the currencies of various countries. The gold standard in Britain is difficult to maintain, and it is also as difficult to maintain the gold standard in other countries.

The good news is that the British's plan to abandon the gold standard was not made out of a sudden order, but was decided after careful consideration and long-term consideration.

Soon after the British government proposed the proposal, British Prime Minister Baldwin contacted Australasia and said that he would establish a sterling bloc centered on the British pound after abandoning the gold standard, and said that the new British pound would still be pegged to the Australian dollar, and the Australian dollar would also become the main currency in the British sterling bloc.

British Prime Minister Baldwin's wooing of Australasia is already obvious. And so it is.

Because after the abandonment of the gold standard, there was no fixed ratio of currencies between countries.

The stability of the value of the currency, and the trust of the new paper currency, depends not only on the number of countries that endorse the currency, but also on the gold reserves and strength of the country.

It is clear that the British Empire alone cannot maintain the British Pound as the world's currency.

Because the Americans also have the help of the island nation, and the United States has a lot of money, it is not necessarily an opponent to really fight to consume the British.

This can only be blamed on the great cause of the British country, and basically there are certain enemies in various regions.

The enemy of Europe is France, the enemy of Asia is Russia, and the enemy of the Pacific is the island countries and the United States.

In such a situation, if Britain does not enlist a reliable ally to maintain the stability of the pound, the value of the pound will definitely suffer.

The British did not surprise Arthur by court, and it was also in Arthur's interests.

After all, the Australian dollar and the pound are deeply pegged, and judging from the current situation, it is impossible to separate them.

With Arthur's nod of approval, the Australasian government agreed to abandon the gold standard and join the British sterling bloc after the British abandoned the gold standard.

With Australasia's promise, the British government was clearly emboldened, and the issue of abandoning the gold standard was swiftly passed in Parliament.

On May 25, 1927, the British government officially issued a proclamation to the outside world, announcing that due to irreparable mistakes, after careful consideration, the gold standard would be abandoned, and a monetary system managed by the government would be established, and the new pound would no longer be pegged to gold.

Such news caused an uproar in the UK and throughout Europe, as Britain was the first country to come forward and declare that it would abandon the gold standard.

Coupled with the fact that the pound is involved in too many countries, including a large number of colonies around the world, this is simply a blow to the world's gold standard.

This also means that the gold standard of all countries since Britain cannot be maintained. The big brother of the gold standard, Britain, gave up, and they had no choice but to give up.

Australasia did not break its promise, and after some preparations, on June 2, 1927, the royal family and the government jointly issued a declaration to abandon the gold standard with immediate effect, and the Australian dollar was no longer pegged to gold.

Before the world could begin to discuss these two news, the governments of the United Kingdom and Australasia issued a joint statement to form the British pound-Australian dollar group, with the British pound and the Australian dollar as the official currencies of the group, and a fixed exchange rate conversion.

The new currency exchange rates are as follows:

£1 = 20 British Shillings = 240 British Pence = 2 Australian Dollars = 20 Australian Shillings = 200 Australian Pence.

At the same time, the currency bloc also issued requirements to countries. The two governments jointly stated that the currencies of the countries that join the currency bloc will maintain a fixed exchange rate with the British pound and the Australian dollar to ensure that the currencies of each country maintain a relative balance.

In addition, trade between the member countries of the currency bloc is calculated in pounds sterling or Australian dollars, ensuring that there will be no losses caused by fluctuations in currency value in import and export trade.

Naturally, such a piece of news attracted the attention of the whole world, and the GBP-AUD group became a hot topic of discussion in all countries of the world.

Whether to join this new monetary bloc and whether to abandon the gold standard immediately became the most difficult choice for the countries of the world in 1927.

Abandoning the gold standard means abandoning the monetary system that the country has adhered to for decades or even centuries.

This is a huge shock to a country's currency, and the slightest carelessness may cause the country's monetary credit to collapse in an instant.

After all, compared to gold, which is growing in value, paper money, which relies on official government credit, has become more uncontrollable.

No matter how bad the pound was, it was converted to gold, so there was no need to worry about a sharp depreciation of the pound.

But now, if Britain and Australasia had a plan, they could easily depreciate and appreciate the pound and the Australian dollar, which would be less friendly to those who joined the currency bloc.

After all, their currencies are pegged to the Australian dollar and the British pound, which means that their currency is likely to be influenced by the United Kingdom and Australasia.

This way of handing over the monetary credit of one's own country to other countries is undoubtedly showing itself to other countries.

However, some countries will hesitate, and some countries will naturally be tempted and act.

There are still a lot of younger brothers in the UK, and a large number of them have expressed their hearts, which is already pushing for the issue of abandoning the gold standard.

What Arthur didn't expect was that the fastest to take action was actually the Grand Duchy of Finland controlled by Dmitry.

Not long after, on June 14, the government of the Grand Duchy of Finland issued a statement saying that Finland would abandon the gold standard and join the GBP-AUD currency bloc with immediate effect.

3000 words for the first update, ask for a monthly pass, ask for support!

(End of chapter)