A: I think that going back to the gold standard is not likely unless, of course, all the paper money regimes totally implode. The gold is a hard asset that nobody can control; credit will be extremely restricted and will lead to deflationary pressures. So, that’s unlikely to happen unless the dollar standard completely breaks down. Hopefully, we won’t reach that stage. Indeed, policy makers need to reconvene and decide on a global monetary system that is sustainable, not as flawed as the dollar standard, and able to prevent large trade imbalances. That wouldn’t be easy, but harder things have been done. |