there seem to be serious problems with the gold standard because of what attracts people, that it is rigid and unchanging. If the us economy grows a lot, how do we get more gold? what if a ship with a lot of our gold on it goes down in the middle of the ocean?
What problems would it improve? if we have a recession, how would the govt help keep things going (ie print dollars)? Most people wouldn't have been better off if most large banks had failed then.
The point would be to not print more and more dollars to "boost" the economy and run more trade deficits, especially using debt. With the gold standard trade deficits would result in less money being printed.
What problems would it improve? if we have a recession, how would the govt help keep things going (ie print dollars)? Most people wouldn't have been better off if most large banks had failed then.