According to your text, the US should not return to a gold standard because a gold standard is least likely to be adopted or retained where political circumstances make it most desirable. a gold standard would severely cripple central bankers in their efforts to stabilize the monetary system. it would cause inflation. there is no longer sufficient monetary gold available to back the existing inflated money stock. there is no useful function that a gold standard can perform since gold has no intrinsic value.

According to your text, the US should not return to a gold standard because a gold standard is least likely to be adopted or retained where political circumstances make it most desirable. a gold standard would severely cripple central bankers in their efforts to stabilize the monetary system. it would cause inflation. there is no longer sufficient monetary gold available to back the existing inflated money stock. there is no useful function that a gold standard can perform since gold has no intrinsic value.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 8DQ

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