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The Gold Standard

At one time or another, many of the major countries around the world had monetary systems based on a gold standard—currency that could be redeemed, at least in part, for gold. But not a single country does so today. The U.S. and many other economies abandoned the gold standard more than 40 years ago. Still, advocates of a gold standard periodically call for its return, saying that it would curtail or prevent inflation. St. Louis Fed economist David Andolfatto explains the gold standard and discusses its pros and cons.

To learn more:

Deflation under the Gold Standard in the U.S. between 1870 and 1913

Why Doesn't the U.S. Return to the Gold Standard so that the Fed Can't Create Money "Out of Thin Air"?

Bitcoin and Beyond: The Possibilities and the Pitfalls of Virtual Currencies