Gold Standard

by Amira, Sarah, and Erni

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. There are three types of gold that can be distinguished which is specie, bullion, and exchange.

The study focuses on advantages and disadvantages of the gold standard. The first advantage that has been discussed in the video is, gold retains a value that has been recognized across the globe throughout history. Second, returning to a gold standard would lower inflation rates and slow the rise in consumer prices. Lastly, a gold standard would prevent the government from overprinting money to bail out financial corporations.

The second part is disadvantages of the gold standard. Firstly, returning to a gold standard would be a large waste of time, money, and resources. Secondly, the gold standard caused many financial waves of panic, bank failures, and prolonged the Great Depression and lastly, well-managed fiat monetary system is the best way to keep inflation down, not returning to a gold standard.

In summary, it is not relevant to applied in nowadays. It might affect all of the bank institution around the world. Plus, to change all monetary system that we all used today to the old system will waste money and illogical.