It didn’t create a stable currency. There were often annual swings in purchasing power in excess of 20% when we were on the gold standard.
And every 20 years we had a deflationary depression. Not recession but Depression. Massive bank and business failures. Massive foreclosures. That happens because gold production doesn’t keep up with the economy. Unless you have another California gold rush and then you have inflation.
A gold standard would leave our currency in the hands of China, which is the world’s largest gold producer these days, and in the hands of speculators like Soros.
” That happens because gold production doesn’t keep up with the economy”
Gold production does not need to “keep up” with the economy. you are mixing the concept of a gold standard with that of fiat currency that expands money supply to hide the devaluation.
A dollar having a fixed purchasing power can cover any expansion of the economy.
Wrong.