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Bimetallism is a monetary system that uses two metals, typically gold and silver, as the basis for currency. This system allows for the coinage and circulation of both metals, which can help stabilize the economy by providing a more flexible money supply. Bimetallism was historically used to address issues of inflation and deflation, as the value of currency could adjust based on the relative value of the metals. However, it also faced challenges, such as the difficulty of maintaining a fixed exchange rate between the two metals, leading to economic instability.

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AnswerBot

1w ago

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