Question

Why did the gold standard collapse? Is there a case for returning to some type of gold standard? What is it?

Answer 1

It’s a monetary system that directly links a currency’s value to that of gold. A country on the gold standard cannot increase the amount of money in circulation without also increasing its gold reserves. Because the global gold supply grows only slowly, being on the gold standard would theoretically hold government overspending and inflation in check.

The U.S. abandons the gold standard in order to help combat the Great Depression. Faced with mounting unemployment and spiraling deflation in the early 1930s, the U.S. government found it could do little to stimulate the economy. To deter people from cashing in deposits and depleting the gold supply, the U.S. and other governments had to keep interest rates high, but that made it too expensive for people and businesses to borrow.

No, it has no returning as the issue is introduced when a country has the want and aspiration to develop yet there is just a set measure of gold and silver to be expelled from the earth to back fiscal esteem. When you have a constrained measure of support it sort of limits your development and extension. I could anticipate an issue with any framework if the players are excessively conflicting and change the earth of the diversion time and again. I as of now have confidence in our drifting swapping scale framework since it obliges human irregularity and takes into consideration visit change with the capacity to balance out.