# 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](ideologies/austrian-economics.md).

## Criticisms

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 system.

* 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)

## Essays

1.  [@bernanke_essays_2004]
2. [@krishna_when_2017]