Stability of Gold Standard and Its Selected Consequences

Authors

KVASNIČKA Michal

Year of publication 2007
Type Article in Periodical
Magazine / Source PROCESOS DE MERCADO
MU Faculty or unit

Faculty of Economics and Administration

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.

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