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We abandoned the gold standard because governments wanted to spend money (usually on war) that they didn't have.
by richcollins 15y ago
We abandoned the gold standard because governments wanted to spend money (usually on war) that they didn't have.
- sethg 15y agoBut even before the gold standard was officially abandoned, devaluation was a regular feature of gold- and silver-based currencies. I once saw an exhibit in the Israel Museum showing a sequence of ancient coins, all stamped from the same die over a period of some decades, where the gold content gradually declined from about 99% to about 1%.
- arohner 15y agoYes, because it was possible and practical for the gov't to do so. Governments have always devalued their currencies, and citizens are rarely happy about. Just because it happens doesn't mean "we" chose it.
- ignifero 15y agoso what's your suggestion when a country runs out of money? (practical example today: greece)?