(11) Bernanke (2012b) refers here to the example of Britain leaving the gold standard in 1931, but speculative attacks do not generally result in the collapse of the monetary standard
. Many cases are resolved through a revaluation of the exchange rate as happened several times during Britain's experience with the gold standard.
The Cato Institute's George Selgin, a leading figure in the modern "free banking" school, maintains for different reasons that bitcoin's fixed supply makes it ill-suited to becoming the monetary standard
. He thinks a growing labor force under a fixed supply of money would be especially problematic: Average compensation would be driven down over time, and workers would find this unacceptable.
They agreed to inaugurate an international gold-backed monetary standard
reliant on the U.S.
The other issue related to the cryptocurrencies is the lack of transparency or any monetary standard
Under the Constitution, a precious metal or "specie" monetary standard
is implied by the clause in Article I, Section 8 giving Congress the power to "coin [not "print"!] money, and regulate the value thereof." That this turn of phrase refers specifically to a gold and silver (or "bimetallic") monetary system is reinforced by a clause in Article I, Section 10 expressly prohibiting the states from coining money, issuing "bills of credit" (i.e., promissory notes), or making "anything but gold and silver coin a legal tender in payment of debts."
After spending nearly two hundred pages of detailed analysis showing that political authorities cannot be trusted to manage a monetary standard
in the interest of the common good, Timberlake proposes a return to a strict constitutional interpretation of Congress's monetary powers.
has an incumbency advantage due to the network properties of a monetary standard
. The greater the number of people who are plugged into the dollar network, ready to buy or sell using dollars, the more useful using dollars is to you.
Plainly, the euro in no way constitutes the ideal monetary standard
, which, as we saw in the first section, could only be found in the classic gold standard, with a 100-percent reserve requirement on demand deposits, and the abolition of the central bank.
But inflation is both improbable and inconsequential as long as money is defined in terms of a fixed weight of gold (or silver), and the monetary standard
is not debased by government printing of fiat money.
The depreciation of silver also started fierce controversies concerning the best monetary standard
"What Is the Monetary Standard
, Or, How Did the Volcker-Greenspan FOMC's Tame Inflation?" Federal Reserve Bank of Richmond Economic Quarterly 94 (Spring): 147-71.