I think the gold standard problem is much more fundamental than this - a gold standard prevents trade. It's rather like Greece in the Euro at the moment, their currency can't move to reflect the fact that their economy is broken, so it can't price exports effectively to bring their economy back again.
The gold standard gives your currency all the inflexibility of being chained to Germany without any of the "being able to nick all Germany's money" benefits.
Chess, what is it you found appealing about the gold standard?
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Date: 2011-11-01 12:11 am (UTC)From:The gold standard gives your currency all the inflexibility of being chained to Germany without any of the "being able to nick all Germany's money" benefits.
Chess, what is it you found appealing about the gold standard?