Tag: Central banking

No country in the world currently operates on a gold standard, having abandoned it for more flexible fiat systems throughout the 20th century. The enduring question remains: is the gold standard good as a foundation for a modern economy, or are its historical flaws too significant to overcome?

The gold standard provided relative long-term price stability during its peak between 1871 and 1914, but its inherent inflexibility ultimately contributed to its downfall. This historical evidence highlights the complex debate surrounding this monetary system and raises the question: Is the gold standard a good thing for modern economies?