Monetary Policy (Gold Standard)

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This item was added by alexmerced on July 13, 2008

Description: When you have FIAT money supply, credit can be virtually unlimited, and when credit is virtually unlimited so is debt. This is why a true Gold Standard (not the fractional reserve system we had pre-1900's) where people can only lend out what they have instead of creating imaginary money leveraged on other imaginary money (margin accounts and real estate equity) is where you'll see governmental debt and personal debt kept in check. WHich would give for an economy with a fixed level of volatility. ( Edited by alexmerced)

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