Managing in a Global Economy

Managing in a Global Economy Fall 2021

Lesson 6

Next assignment

Should we return to the

Gold Standard ?

1

Should we return to the Gold Standard ?

• We have now studied the gold standard: • As part of economic history • As part of prospective economic policy • We need to ask: • Was the gold standard good for the global

economy ?

• Is the gold standard a or the solution to the problems of the global economy today ?

2

Key themes!

• Gold standard as basis for fixed exchange rates • Gold standard as constraint on inflation • Gold standard as constraint on government

debt !

• But: • Gold standard as constraint on growth • Gold standard = fixed exchange rates = no

gradual adjustment !

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