Stability of Gold Standard and Its Selected Consequences
| Authors | |
|---|---|
| Year of publication | 2007 |
| Type | Article in Periodical |
| Magazine / Source | PROCESOS DE MERCADO |
| MU Faculty or unit | |
| Citation | |
| Web | http://www.econ.muni.cz/~qasar/papers.html |
| Field | Economy |
| Keywords | gold standard; stability; inflation |
| Description | The paper shows that the stability of the gold standard to shock stemming from the gold market depends critically on the size of the monetary stock of gold---the lower the size the less stable price level. This beside others means that a free banking of the Scottish type might undermine its own stability. It also means that it might not be possible to reestablish the gold standard in a small country unilaterally. |