20 lines
1.0 KiB
Markdown
20 lines
1.0 KiB
Markdown
# Gold Standard
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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).
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## Criticisms
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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.
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* Unequal distribution of gold across Earth gives certain countries and groups unequal access to value detached from economic activity and based purely on geography.
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* Limits the amount of economic growth because supply is limited.
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* Does not allow market intervention during recessions.
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* Short-term price volatility.
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* Deflationary currencies encourage hording and punish debtors.
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* Gold mining and production is not predictable on long time scales.
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* Shocks in one economic region transfer to other regions. (Great Depression & World War II)
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## Essays
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1. [@bernanke_essays_2004]
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2. [@krishna_when_2017] |