Should we return to the Gold Standard ?
We have now studied the gold standard:
As part of economic history
As part of prospective economic policy
We need to ask:
Was the gold standard good for the global economy ?
Is the gold standard a or the solution to the problems of the global economy today ?
Key themes!
Gold standard as basis for fixed exchange rates
Gold standard as constraint on inflation
Gold standard as constraint on government debt !
But:
Gold standard as constraint on growth
Gold standard = fixed exchange rates = no gradual adjustment !
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