The Nationalization of Currencies in the Gold Standard System

Name: The Nationalization of Currencies in the Gold Standard System
Brand: Vita e Pensiero
Price: 6.00 EUR
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Issue

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2011 - 3-4

Title

The Nationalization of Currencies in the Gold Standard System

Author

Carlo Comaschi

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

03-2011

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

This article was written following the Gold Standard suspension by the United States in March 1933. The author discusses the correlation between the sharp decrease drop in the price of goods and the parallel increase in the price of gold, suggesting that the these processes are rooted both in the use of gold as true currency, rather than as a standard of value for all national currencies, and in the huge demand for gold as a store of value in times of uncertainty. The author proposes the institution of a Gold Bullion Standard, with the issue of legal tender money still regulated by gold possession; actual circulation and convertibility of gold should however be banned and gold should be used as a medium of international exchange only. Moreover, he points out the need for the establishment of a system of multilateral clearings in order to restart international trade and foster economic recovery on a sounder basis.

Key words: national and international monetary policies.

JEL Classification: B2, E5.