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I can't tell if you are talking about real life, or if you are talking about a hypothetical scenario. You are aware that bank panics were common when the gold s
by lkrubner 8y ago
I can't tell if you are talking about real life, or if you are talking about a hypothetical scenario. You are aware that bank panics were common when the gold standard was in force? Banks routinely made $5 million in loans when they had $1 million of gold in their vaults?
- ucaetano 8y agoLoaning out a gold-backed currency isn't loaning out gold. You seem to be confusing "1 pound of gold" with "a piece of paper saying that bank X will trade this for 1 pound of gold". The two are not the same.