Larry White on Gold, Fiat, and Bitcoin: Determining the Ideal Monetary Standard
Macro Musings with David Beckworth
00:00
The Supply and Demand of Gold in an Ideal World
In an ideal world, the price of gold would rise and fall in line with supply and demand. But if a large country decides to join the gold standard, that shifts the demand curve for monetary gold to the right. In the long run, there's a change in the quantity of monetary gold and the purchasing power comes back to where it started. This reminds me of the cashroom at the Treasury where you could use to take your government liabilities and redeem them for silver or some other commodity when the US government provided that.
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