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Which makes me think that a gold standard has to always come with proper education about IoUs etc. Bubbles are only bad if people are deceived, because the pro
by WanderPanda 5y ago
Which makes me think that a gold standard has to always come with proper education about IoUs etc.
Bubbles are only bad if people are deceived, because the proper way of riding a bust out by doing nothing (creative destruction) is too painful and may lead to political extremism.
- imtringued 5y agoWith a reserve currency like the USD the bust only happens in the USA while the boom happens outside of it.
- spiralx 5y agoWhich is why the US has been trying to discourage the use of the dollar as a reserve currency for well over a decade now. There are no real upsides to being a reserve currency (i.e. the strength of the dollar is because of the size and strength of the US economy, not because it is a reserve currency), and a big downside: financial problems around the world lead to the buying of dollars, causing the price to go up which makes imports more expensive and costs for American businesses and consumers to go up. https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-dollars-international-role-an-exorbitant-privilege-2/ https://www.brookings.edu/blog/ben-bernanke/2016/01/07/the-d...