4 ms·

Basic macroeconomics is a refutation of the Gold Standard. The only people I've ever heard who promote it are those (usually libertarian) who object to the ver

Basic macroeconomics is a refutation of the Gold Standard. The only people I've ever heard who promote it are those (usually libertarian) who object to the very existence of the Fed on ideological grounds. I've never heard a serious, mainstream economist propose it. Interestingly, it's also a refutation of BitCoins as a currency. They actually make a very good commodity, but they're useless as a currency. The very scarcity that gave them perceived value in the beginning has led to the hyper-deflation that now makes them unsuitable for commerce. If they could be granularized (so you could pay 150 mBC), then they might be worthwhile. When the smallest transferable amount is $10, however, they kinda suck.

dirtae 15y ago
> I've never heard a serious, mainstream economist propose it. Jim Grant has been calling for a return to the gold standard. He is the publisher of Grant's Interest Rate Observer, which is a very serious publication widely followed by professional investors. http://online.barrons.com/article/SB50001424052702303392404576566862208601914.html http://online.barrons.com/article/SB500014240527023033924045...
Astrohacker 15y ago
Or maybe governments should just not take on ludicrous amounts of debt.
- RyanMcGreal 15y ago
  Debt isn't good or bad in itself. Whether a given debt is bad depends on some factors: * What is the debt as a fraction of GDP? * What is the interest rate on the debt? * What is the growth rate of the economy? * What was the debt incurred to finance? If a large public debt finances critical public infrastructure that will promote rapid economic growth and interest rates are reasonably low, the country will be in a situation where the economy is growing faster than the debt and the debt-to-GDP ratio is going down. That's a good situation to be in.
keeperofdakeys 15y ago
Bitcoins are actually divisible, one bitcoin can be split into 100 000 000 pieces. I don't know how inflation would work though. You can't print more money. Maybe not having enough bitcoins would drive prices down.

dirtae 15y ago

> I've never heard a serious, mainstream economist propose it. Jim Grant has been calling for a return to the gold standard. He is the publisher of Grant's Interest Rate Observer, which is a very serious publication widely followed by professional investors. http://online.barrons.com/article/SB50001424052702303392404576566862208601914.html http://online.barrons.com/article/SB500014240527023033924045...

Astrohacker 15y ago

Or maybe governments should just not take on ludicrous amounts of debt.

RyanMcGreal 15y ago
Debt isn't good or bad in itself. Whether a given debt is bad depends on some factors: * What is the debt as a fraction of GDP? * What is the interest rate on the debt? * What is the growth rate of the economy? * What was the debt incurred to finance? If a large public debt finances critical public infrastructure that will promote rapid economic growth and interest rates are reasonably low, the country will be in a situation where the economy is growing faster than the debt and the debt-to-GDP ratio is going down. That's a good situation to be in.

keeperofdakeys 15y ago

Bitcoins are actually divisible, one bitcoin can be split into 100 000 000 pieces. I don't know how inflation would work though. You can't print more money. Maybe not having enough bitcoins would drive prices down.