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Presumably they could've also gone back to a gold and silver standard. (This would be a terrible idea for other reasons, but it wouldn't inflate, right?)
by sevenless 10y ago
Presumably they could've also gone back to a gold and silver standard. (This would be a terrible idea for other reasons, but it wouldn't inflate, right?)
- nradov 10y agoIn principle a precious metal currency could inflate — if someone finds more gold and silver. There are semi-plausible proposals for asteroid mining.
- edko 10y agoArgentina did something similar in the 90s. Not with precious metals, but with a strong currency (the dollar). It did stop inflation, but, after a decade, it had to be abandoned, because it was too restrictive. Of course, if politicians would have been less corrupt, or better at making decisions, maybe it would have worked longer.
- GFischer 10y agoEcuador went one step ahead in 2000: https://en.wikipedia.org/wiki/Currency_substitution https://en.wikipedia.org/wiki/Currency_substitution I can't find non-biased studies, but I believe it was mostly positive: http://www.cato.org/blog/dollarization-hurting-ecuador-dont-believe-it http://www.cato.org/blog/dollarization-hurting-ecuador-dont-...