19 lines
920 B
Markdown
19 lines
920 B
Markdown
# Gold Standard
|
|
|
|
A monetary standard based on precious metals, espoused as [[sound-money]] in [[austrian-economics]].
|
|
|
|
## Criticisms
|
|
|
|
Very few mainstream economists believe the gold standard to be a good way to run a currency anymore. 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)ss
|
|
|
|
## Essays
|
|
|
|
1. [Ben Bernanke|@bernanke_essays_2004] |