The Great Recoinage of 1696 was a major event in English history that led to the creation of the British Gold Standard. Charles Davenant, an influential figure at the time, played a key role in shaping monetary policy through his theories on paper credit and the flow of income. The recoinage decision was influenced by Davenant's ideas and discussions with Lord Godolphin, highlighting the importance of his contributions to the monetary system in the late 17th century.