Essay on Gold Stander

Submitted By xuzheng19880626
Words: 482
Pages: 2
Open Document
Eco 427
Mini Paper: Should U.S. to return to the Gold Standard?
Xu Zheng
2/4/2013

What is Gold standard?
The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. There are three distinct types of "gold standards". The gold specie standard is a system in which the monetary unit is associated with the value of circulating gold coins or has the value of a certain circulating gold coin along with other coins made of less valuable metal.
Should U.S. back to the Gold standard? In my opinion U.S. should not back to the Gold standard.
For the domestic of U.S. the debt crisis and the U.S. government keeps huge spending on frequent foreign wars it lead Fed (Federal Reserve System) continued Banknote Printing. So the gold convertibility of bank notes will be more and more difficult which undermined the principle of free exchange. The subprime mortgage crisis is still has impact on U.S. and the employment rate remains in the doldrums so that the Financial environment is erratic. The export reduced serious that capital flight will cause the massive outflow of gold.
For the International side As U.S. dollar is Global currency the European debt crisis affecting international financial markets that some government credit cannot be guaranteed. The demand of U.S. dollar is huge that some people in small country using dollar even more than their national money. The dollar has lower inflation than their national money did. If U.S. to return to the gold standard, the Fed will face huge principal savings pressure that is difficult to control the outflow of gold.
In addition 2/3 of the world’s gold stock is occupied by few super countries that weaken the power of other national based monetary system. It will inevitably lead to damage the freedom gold casting and freedom circulation.
Show More

Related Documents: Essay on Gold Stander

The Age Of The Universe

Anthony Bailey Astronomy - PSCI 101 - ASR Professor: Edward J. Stander 12/3/2013 The age of the universe Throughout modern universe astronomers can estimate the age of the universe with all different bodies that creates the universe. The universe is 13.7 billion years old and the big bang happen around 10 to 20 billion years ago by scientist estimation. The way astronomers figured out the solution was figuring out the age of the cluster stars, the age of the old…

Words 1432 - Pages 6

Mahatma Gandhi Research Paper

Mahatma Gandhi Table of Contents Introduction………………………………………………………………. 1 Childhood………………………………………………………………….1 Marriage…………………………………………………………………... 2 Lawyer…………………………………………………………………….. 3 South Africa endeavors…………………………………………………… 4 Back to India……………………………………………………………... 5 Death of Kasturba………………………………………………….……….7 Death of Gandhi…………………………………………………………….7 Gandhi’s killer……………………………………………………………...8 Legacy………………………………………………………………...……9 Leader applied to the hospitality industry……………………………….....9 Analysis…

Words 3573 - Pages 15

Advantages Of Interior Design

 Physical differences : - Brain differs according to sex: while it was well known that a difference in size between male and female brains exists, there is now evidence that there are significant differences in the size of certain structural parts of the brain, according to gender (Zaidi, Gender Differences in Human Brain: A Review 2010) Their brains show anatomical, functional and biochemical differences in all stages of life. These differences begin early during development due to a combination…

Words 2471 - Pages 10

Test: Early American History Essay

tax to 3cent from the original 6-cent o Strict enforcement (they have tax collectors going around) • Molasses Act (1733) o 6-cent tax on every gallon of molasses o Loose enforcement • Currency Act of 1764 o Removed paper money o Bullion (card money; gold/silver) • Direct tax: Stamp Act (1765) o Tax on paper: legal documents; newspaper; playing cards; etc.… o Already in effect in England o Apply taxes equally in the British Empire o It affects everyone; want to get married? Want to sell something…

Words 3741 - Pages 15