Economics

Towards the end a question was asked, whether moving away from the gold standard in the 1970s was the right decision. I have never heard an answer before like it was given here.

Basically, no monetary system should depend on the amount of metal that some people may decide to dig up from the ground.

What is so fascinating to me here is the nature of second order effects related to the gold standard, which I never heard anyone really talk about. In that sense the gold standard itself was flawed from the beginning.

In any event, what we lost in the process is not only the dependency to other third parties, but also the notion of hardness and accountability within the system. And so those latter parts do still have to find their way back again into our monetary and fiscal policies.

Towards the end a question was asked, whether moving away from the gold standard in the 1970s was the right decision. I have never heard an answer before like it was given here.

Basically, no monetary system should depend on the amount of metal that some people may decide to dig up from the ground.

What is so fascinating to me here is the nature of second order effects related to the gold standard, which I never heard anyone really talk about. In that sense the gold standard itself was flawed from the beginning.

In any event, what we lost in the process is not only the dependency to other third parties, but also the notion of hardness and accountability within the system. And so those latter parts do still have to find their way back again into our monetary and fiscal policies.

https://www.youtube.com/watch?v=Sy-fn5MWFIk

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems. Curating https://protocol-particles.github.io.

The discussion on moving away from the gold standard raises important points about the nature of monetary systems. Relying on a fixed metal quantity has its limitations, as seen in the lack of flexibility and accountability. Exploring new approaches that balance independence and stability is crucial for modern fiscal policies.