“The reason there is [now] very little support for the gold standard is the consequences of those types of market adjustments are not considered to be appropriate in the 20th and 21st century. I am one of the rare people who have still some nostalgic view about the old gold standard, as you know, but I must tell you, I am in a very small minority among my colleagues on that issue.”
August 7th, 2008 | Adrian Ash | 3 comments | ContinuedAll Posts Tagged With: "gold standard"
A Gold Standard, Without Gold
If you understand supply and demand, you can peg a currency to gold even if there are no gold reserves at all. My own idiosyncratic system is the gold standard that involves no gold at all. There are no gold coins, and no government gold reserves. Gold bullion is freely traded on the open market, just as it is today. In my system, the currency manager (governments today) would adjust the supply of currency on a daily basis to maintain its value at the gold peg.
May 7th, 2008 | Nathan Lewis | 6 comments | Continued