Goldene Illusionen, gefährliche Folgen: Warum ein entpolitisierter, regelgebundener Goldstandard keine tragfähige Alternative zur derzeitigen Währungsordnung ist
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Goldene Illusionen, gefährliche Folgen: Warum ein entpolitisierter, regelgebundener Goldstandard keine tragfähige Alternative zur derzeitigen Währungsordnung ist
Schlotmann, Olaf | Siddiqui, Sikandar
Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 3 : pp. 281–298
Additional Information
Article Details
Author Details
Prof. Dr. Olaf Schlotmann, Brunswick European Law School; Ostfalia Hochschule für angewandte Wissenschaften, Salzdahlumer Stra???e 46 / 48, 38302 Wolfenbüttel
Dr. Sikandar Siddiqui, SCDM Germany GmbH, Sonnemannstra???e 9–11, 60314 Frankfurt am Main
Abstract
Golden Illusions, Dangerous Consequences: Why a Depoliticized, Rule-based Gold Standard is Not a Viable Alternative to Today's Currency Régime
Many observers of today's economic events have doubts that monetary policy, given its currently available set of instruments, can contribute significantly to a restoration of macroeconomic stability. Hence, some critics of the current status quo have recommended the return to a currency system inspired by the classical gold standard prevailing between 1844 and 1914. However, this paper indicates that a restoration of the gold standard is incapable of ensuring price level stability, promoting a sustainable external trade balance, or even preventing credit-driven boom and bust cycles. Moreover, a new gold standard would distort the price relationship prevailing between gold and other goods and bring about the threat of deflation. Hopes that linking money to gold could contain private credit growth and thus help stabilize the economy turn out to be questionable, too. The gold standard is history, and there is no reason to change anything about this.