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2.0 KiB
Markdown
22 lines
2.0 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](austrian-economics.md).
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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](fiat-money.md) system. Common criticisms of the gold standard include:
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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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See also [sound money](sound-money.md) and [Austrian economics](austrian-economics.md).
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## References
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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. Allon, Fiona. 2018. ‘Money after Blockchain: Gold, Decentralised Politics and the New Libertarianism’. Australian Feminist Studies 33 (96): 223–43. https://doi.org/10.1080/08164649.2018.1517245.
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1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.
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1. Bernanke, Ben S. 2004. Essays on the Great Depression. Princeton University Press.
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1. Selmi, Refk, Jamal Bouoiyour, and Mark E. Wohar. 2022. ‘“Digital Gold” and Geopolitics’. Research in International Business and Finance 59: 101512. https://doi.org/10.1016/j.ribaf.2021.101512.
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1. Wang, Gangjin, Yanping Tang, Chi Xie, and Shou Chen. 2019. ‘Is Bitcoin a Safe Haven or a Hedging Asset? Evidence from China’. Journal of Management Science and Engineering 4 (3): 173–88. https://doi.org/10.1016/j.jmse.2019.09.001. |