Gold Standard Research Paper

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Recommended: The importance of the gold standard

The Golden Rule: Restoring The Value Of The Dollar With Gold-Backing
The gold standard is a necessary element of a healthy economy because a fiat currency can effectively destroy its own value. Before World War Two, Germany had severe problems with the inflation of their currency that reached absurd quantities. There were times during the 1920’s that a German family would buy their food at lunch because by the time evening came around the price of food had doubled or tripled. The US government has not yet returned our property rights since it took away the gold backing of the dollar during Nixon’s presidency. Reintroducing the gold standard would be the best thing that could happen for the future of the US economy. A gradual long term transition to full gold standard using a temporary fractional reserve of gold with regulated imports and exchange value for gold would increase the growth and stability of the US economy. This would serve as the best plan because the gold-backed money would be beneficial to the economy’s growth in the long term, the regulation of gold …show more content…

Despite what is commonly believed about the gold standard, it would improve long term stability compared to our fiat currency. Using a fiat currency and a fractional reserve means that the normal price of gold could be maintained while imports are regulated so that the change in inflation is never drastic. The use of an unbacked currency in addition to a growing supply of gold-backed currency gives the dollar increased flexibility while it is making the transition. There’s a reason people call the highest standard of something the gold standard, because the gold standard was the greatest currency standard as far as currencies

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