What’s the gold standard, and why does the US benefit from a dollar that isn’t tied to the value of a glittery hunk of metal?

What’s the gold standard, and why does the US benefit from a dollar that isn’t tied to the value of a glittery hunk of metal?

The phrase “the gold standard” means, in common parlance, the best available benchmark – as in double-blind randomized trials are the gold standard for determining the efficacy of a vaccine.

Its meaning likely comes from my world of economics and refers to what was once the centerpiece of the international monetary system , when the value of most major currencies, including the U.S. dollar, was based on the price of gold.

Some economists and others , including President Donald Trump and his Federal Reserve Board of Governors nominee Judy Shelton , favor a return to the gold standard because it would impose new rules and “discipline” on a central bank they view as too powerful and whose actions they consider flawed.

This is among several reasons Shelton’s nomination is controversial in the Senate, which voted against confirming her on Nov. 17 – though her Republican supporters may have an opportunity to […]

About the author: StockMan
Tell us something about yourself.
Posting Guidelines
Do
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!

Comments

No comments yet