5 False Reasons the Gold Standard Died
I SAID once that the “gold standard guys are their own worst enemies,” writes Nathan Lewis at New World Economics in this item originally appearing at Forbes.com.
It’s not really a good idea to continue along in this fashion, being your own worst enemy, like some archaic ritual – not if we want a functioning Stable Money arrangement in the future.
This usually does not make me any friends. People don’t like to have their convictions undermined – especially people who like to play the role of the expert. So, let’s just say that it is my silly opinion.
My silly opinion is that there was no great problem with the monetary arrangements of the 1920s – the gold standard systems in use at the onset of the Great Depression. After the British devaluation of 1931, which was followed by twenty-two other devaluations (among 54 countries) before the end of that year, a whole new environment of monetary chaos emerged, which certainly made things difficult for those remaining on a gold standard system.