# Gold Standard
A monetary standard for a [currency](currency.md) based on precious metal [commodities](commodity.md), espoused as [sound money](sound-money.md) in [Austrian economics](austrian-economics.md).

Very few mainstream economists believe the gold standard to be a good way to run a currency. Historically there have been many problems over the now-standard [fiat money](fiat-money.md) system. Common criticisms of the gold standard include:

* Unequal distribution of gold across Earth gives certain countries and groups unequal access to value detached from economic activity and based purely on geography.
* Limits the amount of economic growth because supply is limited. 
* Does not allow market intervention during recessions.
* Short-term price volatility.
* Deflationary currencies encourage hording and punish debtors.
* Gold mining and production is not predictable on long time scales.
* Shocks in one economic region transfer to other regions. (Great Depression & World War II)

See also [sound money](sound-money.md) and [Austrian economics](austrian-economics.md).

## References
1. Green, Russell A. "Gold Standard or Fool’s Gold? Should the US Consider Returning to the Gold Standard?." Issue Brief 02.23. 16 (2016).
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1. Bernanke, Ben S. 2004. Essays on the Great Depression. Princeton University Press.
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