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Isn't that exactly an argument why it had to be abandoned? The government couldn't increase the money supply, because dollars had to be backed by gold.
by hencq 13y ago
Isn't that exactly an argument why it had to be abandoned? The government couldn't increase the money supply, because dollars had to be backed by gold.
- icebraining 13y agoWell, some people disagree with the idea that the inability of the government to increase the money supply means the system doesn't work.
- hencq 13y agoFair enough, but I think most economists agree on the problems with a gold standard [1]. This is moving off-topic, but it's interesting that this seems to be one of many topics where there's a rare consensus between economists, but the general public holds a different opinion [2]. 1. http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_cw1nNUYOXSAKwrq http://www.igmchicago.org/igm-economic-experts-panel/poll-re... 2. http://www.economist.com/news/finance-and-economics/21569378-if-economists-agree-something-public-will-almost-certainly-think http://www.economist.com/news/finance-and-economics/21569378...
- gamechangr 13y agoI posted this article. This is a little off topic, but I like the links. Karma point to u.