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This is the second time today I’ve seen someone say that governments use good as a currency. What governments do this?
by gerikson 7y ago
This is the second time today I’ve seen someone say that governments use good as a currency. What governments do this?
- thefounder 7y agoUsually countries without access to financial markets(i.e Syria, Iran, Venezuela). The credit rating of countries is based on their gold reserves as well so if you have gold you get cheaper loans. https://en.m.wikipedia.org/wiki/Gold_reserve https://en.m.wikipedia.org/wiki/Gold_reserve
- gerikson 7y ago[I now see I mispelled "gold" as "good" in my comment, my bad] As far as I know, none of those countries promises to redeem bearers of banknotes with an equivalent value in gold, which is what being on a gold standard means[1]. Plenty of central banks have gold reserves, that's basically a vestige from the past, but that's not the same as saying the currency is backed by gold. https://en.wikipedia.org/wiki/Gold_standard https://en.wikipedia.org/wiki/Gold_standard