According to Kimberly Amadeo at the Balance, due to trade, money supply and the global economy, the rest of the world would need to go back to the gold standard as well. Why?
Would a gold standard set America back 150 years?
Paul” debate on Bloomberg TV, liberal columnist and Nobel economist Paul Krugman charged that libertarian politician Ron Paul’s support of a gold standard would set America back 150 years. Ron Paul replied that Krugman would set America back 1,000-2,000 years, “just as the Romans and the Greeks or others debased their currency.”
What if the US went back to the gold standard?
For example, if the US went back to the gold standard and set the price of gold at US$500 per ounce, the value of the dollar would be 1/500th of an ounce of gold. This would offer reliable price stability. Under the gold standard, transactions no longer have to be done with heavy gold bullion or gold coins.
