web3/concepts/gold-standard.md

Gold Standard

A monetary standard based on precious metals, espoused as sound-money in austrian-economics.

Criticisms

• 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.

Essays

1. [Ben Bernanke|@bernanke_essays_2004]