Past Present Future The History of Bad Ideas: The Gold Standard
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Apr 28, 2024 Political economist Helen Thompson discusses the rise and fall of the gold standard, its instability, and the transition to fiat money. Topics include why gold was chosen, the source of instability, and the impact of quantitative easing. Explore the evolution of the gold standard, political shifts in the 1930s, and the challenges of moving away from commodity-backed currency.
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Pre-Gold Standard: Silver's Role
- Silver served as a functional international currency from the 15th-19th centuries, facilitating global trade.
- China's adoption of silver currency and Spanish control of South American mines were key factors.
Gold Discoveries and the Shift to Gold
- The rise of the gold standard was partly due to new gold discoveries in California and Australia, not just its rarity.
- This disrupted the existing silver-based system, particularly impacting France's bimetallic approach.
Shakespeare and Monetary Symbolism
- Shakespeare's Merchant of Venice reflects the symbolism of gold as the currency of the elite, while silver represents common trade.
- This historical context adds to the complexity of the gold vs. silver debate.