So I'm confused and as a disclaimer I don't know much about Austrian Economics but I want to learn more. For the Gold Standard is it better to have a fixed gold exchange (government set gold price at 22 dollar per once of gold for instance) or have the dollar's value float with the market price of gold? If it's the latter can you point me in a direction of articles and books:) sorry if this is a dumb question I'm new to the idea.
Thanks for your time,
Albeaver
For the Gold Standard is it better to have a fixed gold exchange (government set gold price at 22 dollar per once of gold for instance)
Rephrasing: should the government (an entity working outside of the forces of supply and demand, hence running into the calculation problem) decide how much money is worth?
How would money work if it doesn't have a fixed exchange rate? What would it look like ie: papper, coinage, something different.... Thanks for your time,
Does USD->euro have a fixed exchange rate?
How about milk. Are milk prices always the same?
But how can you judge teh value of a dollar if you don't have a fixed amount? If the government fixes it at 22 dollars we always know, but if we use market values how can we determin it? would we just use gold coins? sorry i just can't wrap my mind around it
The gold standard is not desirable vis-a-vis market production of money. However, if it is a choice between commodity-backed monopoly money or fiat monopoly money, then the former is desirable because it at least imposes discipline on the monetary monopolist and permits the money to act as paper money substitutes would act in a competitive market in the production of money.
Clayton -