Contra Ben Bernanke, The Gold Standard Promotes Economic Stability

Currently the world is on a fiat money standard – a government-issued currency that is not backed by a commodity such as gold. The fiat standard is the primary cause behind the present economic instability, and is tempted to suggest that a gold standard would reduce instability. The majority of experts however, oppose this idea on the ground that the gold standard is in fact a factor of instability. For instance, the former Federal Reserve Board chairman Ben Bernanke echoed this opposition in his lecture at the George Washington University on March 20, 2012. According to Bernanke, the gold standard…