THIS IS THE DEV/TESTING WEBSITE IPv4: 18.117.155.120 IPv6: || Country by IP: GB
Journals
Resources
About Us
Open Access

Goldene Illusionen, gefährliche Folgen: Warum ein entpolitisierter, regelgebundener Goldstandard keine tragfähige Alternative zur derzeitigen Währungsordnung ist

Year:    2017

Author:    Schlotmann, Olaf, Siddiqui, Sikandar

Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 3 : pp. 281–298

Abstract

Golden Illusions, Dangerous Consequences: Why a Depoliticized, Rule-based Gold Standard is Not a Viable Alternative to Today's Currency Régime

Many observers of today's economic events have doubts that monetary policy, given its currently available set of instruments, can contribute significantly to a restoration of macroeconomic stability. Hence, some critics of the current status quo have recommended the return to a currency system inspired by the classical gold standard prevailing between 1844 and 1914. However, this paper indicates that a restoration of the gold standard is incapable of ensuring price level stability, promoting a sustainable external trade balance, or even preventing credit-driven boom and bust cycles. Moreover, a new gold standard would distort the price relationship prevailing between gold and other goods and bring about the threat of deflation. Hopes that linking money to gold could contain private credit growth and thus help stabilize the economy turn out to be questionable, too. The gold standard is history, and there is no reason to change anything about this.

Journal Article Details

Publisher Name:    Global Science Press

Language:    German

DOI:    https://doi.org/10.3790/ccm.50.3.281

Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 3 : pp. 281–298

Published online:    2017-09

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    E5 Gold standard monetary policy macroeconomic stability credit creation shadow banking

Author Details

Schlotmann, Olaf

Siddiqui, Sikandar