I think the price of silver was fixed in terms of gold as well.
However, today, we have more economic activity than we have gold. If we went back to gold standard, we’d either literally not have enough money, or the price of gold would be artificially inflated far above its current free market valuation.
Not to say that the deficit isn’t a ticking time bomb, but we need another solution for politically expedient overspending.
However, today, we have more economic activity than we have gold. If we went back to gold standard, we’d either literally not have enough money, or the price of gold would be artificially inflated far above its current free market valuation.
Not to say that the deficit isn’t a ticking time bomb, but we need another solution for politically expedient overspending.