> - People ran productive economies for hundreds (thousands?) of years on the Gold standard and it worked.
The Gold Standard (paper currency backed up rocks) only started in 1870. While gold (and silver) coins were used for some monetary needs, most (local) economies actually ran on credit:
> - The supply expands randomly when new deposits are found but this actually works pretty well. As the economy grows we get better at finding gold so prices stay relatively flat in real terms.
The Gold Standard (paper currency backed up rocks) only started in 1870. While gold (and silver) coins were used for some monetary needs, most (local) economies actually ran on credit:
* https://en.wikipedia.org/wiki/Debt:_The_First_5000_Years
> - The supply expands randomly when new deposits are found but this actually works pretty well. As the economy grows we get better at finding gold so prices stay relatively flat in real terms.
No it does not:
* https://en.wikipedia.org/wiki/Great_Bullion_Famine
Neither does it add to financial stability:
* https://www.theatlantic.com/business/archive/2012/08/why-the...
* https://archive.ph/FWKcL