How could a politically determined gold standard work in the free market?
Here’s some random examples. Tell me how you think it’d play out:
Gold backed money but a large minimum is required to convert to gold, e.g., $10,000 or $50,000 or $100,000
Gold prices set very high, e.g., $5,000/oz or $10,000/oz
The inherent issue with this statement politics screws with gold…
In a system where the gold is fixed, basically you have production supporting the standard…
Don’t understand the question, please reformulate.
badly.
This seems to be a very popular misconception when talking about ‘gold standards’. Under a true gold standard, there is no “price” of gold in dollars. The dollar becomes a measure of a specific amount of gold.
That is to say if you declare $1 USD = 1 grain AU - the notion of the ‘price’ of gold disappears.