by Félix Moreno de la Cova
The gold standard is slowly becoming a mainstream discussion point again. This is in part thanks to recent calls from US Republicans for another congressional “gold commission” to examine the idea of restoring some form of gold-backing to the US dollar.
The reaction from mainstream economists, especially those with the fanciest awards and largest loudspeakers, has been predictable: they hate the idea with a passion. However, we will ignore the insults, misleading charts, strawman fallacies and data abuse practised by some, and instead examine more legitimate objections to gold money.
Let us also ignore that lazy and often-repeated argument that “there is not enough gold” for a gold standard to work nowadays. Anybody with a minimum understanding of how supply, demand and prices work can refute this objection.