The War Court and Lap Pillow, Austria's Mandate of Heaven

Chapter 1602 The Second Change to the Gold Standard

At this time, the Austrian Empire still used the most primitive gold standard, which was very advanced at the time and completely avoided the drawbacks of price chaos and currency instability under the bimetallic standard. It even ensured the unity of the world market and the relative stability of foreign exchange rates.

In peaceful, low-debt, and gold-rich 19th-century industrial nations, such as the earlier Austrian Empire, it was an absolutely perfect stabilizer.

However, as the Austrian Empire's economy continued to expand, this system could no longer meet Franz's needs, especially in the current time of economic tension.

What if you don't have enough money? Of course, you play around with it! No! You adjust it using monetary policy.

The gold bullion standard refers to a system in which gold coins are not minted or circulated domestically. Instead, banknotes representing a certain weight of gold are issued for circulation. These banknotes cannot be freely exchanged for gold or gold coins; they can only be exchanged for gold bullion at the issuing bank under certain conditions.

This would greatly improve the country's efficiency in utilizing gold, at least for merchants who like to hoard gold coins to have to exchange them for paper money in order to conduct trade.

Under the gold standard, the central bank has little role to play, and it is difficult to manipulate the currency itself.

However, with the central bank monopolizing the gold-currency conversion rights, the central bank's ability to intervene in the economy has been greatly enhanced.

Furthermore, since the gold bullion standard was an incomplete gold standard system, Franz could use it to his advantage in many ways, such as creating something out of nothing or living beyond his means.

Although this sounds like digging one's own grave, once a country's credit system collapses, it is extremely difficult to repair.

"Your Majesty, I must remind you that while this may resolve all our crises in the short term, what if we cannot find more gold, or the economy does not expand as you imagine, or a sudden economic disaster occurs?"

Therefore, what we face is not just a simple matter of national credit bankruptcy; a comprehensive economic recession, and even the bankruptcy of the national government, is not out of the question.

"That's what Baron Brook said."

"In other words, according to our assessment, you are courting death."

Fanny von Arnstein bluntly stated that she is the granddaughter of Boken von Arnstein, a famous economist of the Austrian Empire, and graduated from the Royal Women's Academy of Vienna, where she studied under her grandfather.

However, to have managed to get close to Baron Brooke, he must have some real talent and ability.

Fanny von Arnstein, as her name suggests, is likely of mixed race. She has delicate features, clear facial contours, and the softness characteristic of French women, along with a pair of bright green eyes and long blonde hair.

Franz felt that the light blue, tight-fitting, low-cut dress made her seem rather frivolous. Apart from Franz, the average age of the men in the room was over 60; it was obvious who she was dressing for.

However, Franz had no recollection of the aggressive female economist; if it weren't for the information board that had been delivered to him earlier, he wouldn't even know her name.

This is one of the reasons why Fanny von Arnstein was so aggressive; back then, as an outstanding graduate of the Vienna Royal Women's Academy, she was never even glanced at by Franzdo.

Franz only awarded prizes to the top three, and when he got to her, he turned around and left.

Fanny von Arnstein specially ordered a special long dress for today and even soaked herself in a bathtub filled with flower petals for a full six hours.

As a result, she was once again spectacularly ignored by Franz.
To be fair, Fanny von Arnstein didn't think she was inferior to anyone in terms of talent, appearance, background, or figure, which is why she dared to make such a bold move.

Of course, Fanny von Arnstein's assessment was also based on her own and the Austrian Imperial Treasury's evaluation of Franz's continued gold standard reforms.

While the gold bullion standard does have many advantages, its implementation faces considerable resistance, and widespread adoption of paper currency is no easy task.

She knew that the Austrian Empire's paper money technology was quite advanced, but no country in the world had yet been able to completely replace precious metal currencies.

Moreover, Franz not only had to contend with ordinary citizens and merchants, but the powerful nobles and large banks also wouldn't willingly hand over their ammunition. Most importantly, she felt Franz's motives were impure. Wasn't he supposed to be a benevolent ruler? How could he be doing things even villains wouldn't dare to dream of?

Furthermore, if the gold bullion standard were to be reformed, it would not only affect the Austrian Empire itself, which had already joined the Europa Monetary Union.

As the largest member of the Europa Monetary Union, Austria was obligated to implement reforms if the empire undertook them; otherwise, the entire union risked disintegration.

Of course, it is more likely that other countries will resist the Austrian Empire's actions, and the resulting impact could affect all aspects of European society.

Fanny von Arnstein was curious to see how this arrogant emperor would respond.

Franz stood up and slowly began to speak.

"Gentlemen, failure is digging our own grave, success is turning the tide!"

The ministers in the meeting room all laughed, and Fanny von Arnstein laughed too, a hint of disdain in her eyes, thinking to herself.

"All they ever did was shout slogans. Seeing is believing."

But the next second, the ministers in the conference room applauded.

"Your Majesty, you are still as sharp as ever."

"I thought you had lost your former ambition after two years of silence."

We will fully support your reforms.

Fanny von Arnstein stared wide-eyed at Baron Brooke in disbelief.

“Miss Fanny, there are no absolute truths in this world. Theory is just theory after all. All we can do is assess the risks and prevent major mistakes.”

"But this is too crazy."

Fanny von Arnstein was still somewhat incredulous; this was completely different from what she had studied, even contrary to it.

This time it was Franz's turn to speak.

"Miss Fanny, do you believe in miracles?"

It was the first time Fanny von Arnstein had met Franz's gaze, and for a moment she felt a little dazed; the man before her was so mysterious and captivating.

Sometimes it feels as towering as a mountain, sometimes as gentle as a spring breeze, and sometimes as profound as the ocean.

He was tall and strong, his beautiful muscle lines faintly visible beneath his white military uniform, radiating vitality.

His chestnut hair was thick and glossy, and his handsome appearance made it hard to associate him with the rumored tyrant.

There are many rumors about Franz, some true and some false, some fantastical and some bizarre. Fanny von Arnstein suddenly started to let her imagination run wild, her heart racing and her face flushing. She couldn't help but say something.

"I am willing."