Year of Award
Master of Business Administration (MBA)
College of Business & Professional Studies
currency, money, mint, inflation, trade, dollar
The focus of this research is to evaluate the effects of the readoption of the gold standard on the financial position of the United States. The topics are presented to highlight their impact on the financial problems plaguing the United States. These problems include a negative trade balance, the federal deficit, and high inflation rates.
The gold standard stabilizes price levels and keeps the rate of inflation low. This is done by allowing a country to print only as much currency as it has gold to support that currency. The gold standard would also prohibit politicians from further monetizing the federal deficit. This system also includes a mechanism to automatically balance payments between countries.
There are a number of arguments against the readoption of the gold standard. This system gives economic power to a country simply because it has gold within its borders. Countries receive no reward for developing advanced technology. A country is not independent to make its own economic policy. The United States must also determine how it would implement the gold standard.
The gold standard does have some good points. These benefits could be the foundation on which a better financial system is constructed. However, it would be almost impossible for the United States to implement the gold standard at this time.
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This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.
Carley, Thomas Glen II, "An Evaluation of the Gold Standard and the Effect of its Return on the American Monetary and Financial System" (1992). Theses, Dissertations, and Capstone Projects. 334.
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