Classical Stuff You Should Know

230: The Gold Standard

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May 2, 2023
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ANECDOTE

French Revolution Bankruptcy

  • AJ Hanenberg learned the French Revolution as the culmination of Enlightenment philosophies.
  • He wasn't taught about France's bankruptcy 60 years prior, caused by John Law's stock bubble scheme.
INSIGHT

Money's Origins

  • Money's origins could be the abstraction of bartering due to its difficulty.
  • Alternatively, it might be the concept of credit or future contracts, like a farmer offering a share of crops for seeds.
INSIGHT

Gold Standard Advantages

  • Gold became a standard due to its divisibility, verifiability, rarity, and non-decay.
  • This facilitated trade by providing a universally accepted, fungible medium.
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