Economics Questions

Re: Modified Gold Standards

freetx — Mon, 08 Jun 2009 22:52:54 GMT

pairunoyd:

Gold prices set very high, e.g., $5,000/oz or $10,000/oz

This seems to be a very popular misconception when talking about 'gold standards'. Under a true gold standard, there is no "price" of gold in dollars. The dollar becomes a measure of a specific amount of gold.

That is to say if you declare $1 USD = 1 grain AU - the notion of the 'price' of gold disappears.

Re: Modified Gold Standards

Juan — Mon, 08 Jun 2009 20:35:25 GMT

How could a politically determined gold standard work in the free market?

badly.

Re: Modified Gold Standards

ivanfoofoo — Mon, 08 Jun 2009 18:25:32 GMT

pairunoyd:

How could a politically determined gold standard work in the free market?

Here's some random examples. Tell me how you think it'd play out:

Gold backed money but a large minimum is required to convert to gold, e.g., $10,000 or $50,000 or $100,000

Gold prices set very high, e.g., $5,000/oz or $10,000/oz

Don't understand the question, please reformulate.

Re: Modified Gold Standards

Harry Felker — Mon, 08 Jun 2009 17:30:20 GMT

pairunoyd:
How could a politically determined gold standard work in the free market?

The inherent issue with this statement politics screws with gold...

In a system where the gold is fixed, basically you have production supporting the standard....

Modified Gold Standards

pairunoyd — Mon, 08 Jun 2009 17:20:34 GMT

How could a politically determined gold standard work in the free market?

Here's some random examples. Tell me how you think it'd play out:

Gold backed money but a large minimum is required to convert to gold, e.g., $10,000 or $50,000 or $100,000

Gold prices set very high, e.g., $5,000/oz or $10,000/oz