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This is a very wide and controversial topic. The main reason that countries use the gold standard is to prop up their currency so that it is secured by something material as opposed to totally unsecured. This is because, theoretically, Fiat money (paper currency) could become worth very little due to inflation (see WWII Germany). Pegging your currency to gold prevents such massive value fluctuations.
Many see it almost as a moral issue, that government either shouldn't or is incapable of effectively managing a nation's currency. A corollary of this is that a gold standard would eliminate a lot of volatility of the market as investors no longer would have to guess Fed moves or lending policy, as the value of the currency would be in a stable (until recently) commodity.
Probably the main benefit would be a reduction in volatility of a currency's value, but it must be warned that the effects of such a move by a country as large as the United States would most likely result in a lot of unforseen consequences, both good and bad.
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What are the economic benefits of artificial fertilisers?
what are the economic benefits of using artificial fertilisers
What is one of the benefits of increasing economic interdependence'?
Greater economic growth is one of the benefits of increasing economic interdependence.
What feature would most likely included in an economic system based on traditional agriculture and self-sufficiency?
Barter
What is meant by economic consequences in accounting standard-setting?
What is the Economic consequence of accounting standard-setting
How many countries use the gold standard?
There are no countries today that are using the gold standard.
What are the economic benefits of a gold rush?
People earned money
What are the economic benefits of the Australian gold rush?
people spend more money in Australia
Which economic reform did NOT occur during the Progressive era?
The removal of the gold standard on the dollar
What is on of the benefits of increasing economic interdependence?
Greater economic growth is one of the benefits of increasing economic interdependence.
How did the abandonment of the gold standard help economy during the depression?
By the time of the Great Depression, every major economic nation had gone off the gold standard. The US abandoned the gold standard in 1933 and confiscated gold coins. People had been hording gold so by confiscating the coins, the government was trying to make the public use banks and paper currency and not depend on gold.
What are the economic benefits of artificial fertilisers?
what are the economic benefits of using artificial fertilisers
What is one of the benefits of increasing economic interdependence'?
Greater economic growth is one of the benefits of increasing economic interdependence.
What economic plan did McKinley support in the 1896 election?
William McKinley believed in "gold standard", instead of "free silver"
How does Japan ensures fiscal balance in sub national entities?
The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. South Africa adopted the gold standard because it let them be on the same level with the rest of the world. Gold had a set price that was the same all over the world and if everybody used it then everybody's currency was the same.
How and when did South Africa adopt the gold standard and why did they abandon it?
The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. South Africa adopted the gold standard because it let them be on the same level with the rest of the world. Gold had a set price that was the same all over the world and if everybody used it then everybody's currency was the same. As the Great Depression set in, many countries (including Great Britain) abandoned their gold standard and devaluated their currencies. South Africa, however, (under General J.B.M. Hertzog) briefly maintained its gold standard and farmers were hard hit when the resulting spike in the cost of South African goods devastated exports, especially minerals and wool. Hertzog finally abandoned the gold standard on 27 December 1932. The move returned South Africa's fortunes; gold prices increased and sparked a phase of economic expansion.
What are ten economic benefits of a gold rush?
Greater PopulationMore MoneyMore people spendingMore employmentNew developmentNew transportationMore businessesNew communicationsIncrease in FarmingMulticulturalism
What economic plan did William McKinley support in the 1896 election?
William Mckinley believed in "gold standard", instead of "free silver"
