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Before 1971 gold backed currency. After its fiat with only backing a promise and price doubling every 15 years on average.

msla 5y ago
Gold-backed currency is fiat, with government setting gold-money exchange rate. Besides, there were more bank runs back in the gold standard era.
- TheGigaChad 5y ago
  Idiot. Enjoy your inflation.
- Proven 5y ago
  > Gold-backed currency is fiat, with government setting gold-money exchange rate. Not all gold-backed money needs to be based on a fixed exchange rate, and secondly, gold coins and bars could be imported from where they were underpriced so exchange rates couldn't be arbitrary. > Besides, there were more bank runs back in the gold standard era. So what? What's wrong with that? Your money, your responsibility. It seems you prefer socialistic techniques of avoiding bank runs, like deposit insurance where even laborers without savings bear the risk of protecting richest person's savings deposits, and the Fed, where currency is debt is created out of absolutely nothing.
- gruez 5y ago
  >Gold-backed currency is fiat, with government setting gold-money exchange rate. The government can theoretically debase its currency at will, but how often does that happen? >Besides, there were more bank runs back in the gold standard era. Right, because there's a real risk that the bank/government won't be able to pay up the gold that was owed. These days it's not an issue because you can just print more money to fulfill the obligations.
- inglor_cz 5y ago
  "Gold-backed currency is fiat, with government setting gold-money exchange rate." Pedantically taken, yes. But outside of major wars, debasement of currency was rare. Compared to contemporary inflation stealthily eating away your savings, the difference is in practice stark.
sethc2 5y ago
Does this really effect anything? If it did you figure the economic statistics would show drastic changes starting round then.

msla 5y ago

Gold-backed currency is fiat, with government setting gold-money exchange rate. Besides, there were more bank runs back in the gold standard era.

TheGigaChad 5y ago
Idiot. Enjoy your inflation.
Proven 5y ago
> Gold-backed currency is fiat, with government setting gold-money exchange rate. Not all gold-backed money needs to be based on a fixed exchange rate, and secondly, gold coins and bars could be imported from where they were underpriced so exchange rates couldn't be arbitrary. > Besides, there were more bank runs back in the gold standard era. So what? What's wrong with that? Your money, your responsibility. It seems you prefer socialistic techniques of avoiding bank runs, like deposit insurance where even laborers without savings bear the risk of protecting richest person's savings deposits, and the Fed, where currency is debt is created out of absolutely nothing.
gruez 5y ago
>Gold-backed currency is fiat, with government setting gold-money exchange rate. The government can theoretically debase its currency at will, but how often does that happen? >Besides, there were more bank runs back in the gold standard era. Right, because there's a real risk that the bank/government won't be able to pay up the gold that was owed. These days it's not an issue because you can just print more money to fulfill the obligations.
inglor_cz 5y ago
"Gold-backed currency is fiat, with government setting gold-money exchange rate." Pedantically taken, yes. But outside of major wars, debasement of currency was rare. Compared to contemporary inflation stealthily eating away your savings, the difference is in practice stark.

sethc2 5y ago

Does this really effect anything? If it did you figure the economic statistics would show drastic changes starting round then.