World Bank President Suggests Return to Gold Standard
Robert Zoellick, president of the World Bank, is the latest person to raise the subject of a gold standard world economy. His comments come in the light of currency and trade wrangling at the G20 as well as fears of inflation.
Many countries used the gold standard back in the 19th Century. Throughout history the gold standard has been dropped and reintroduced again. One reason to the gold standard was dropped in the UK was that funding was needed for World War I. Having a gold standard means that government cannot print money.
Most analysts believe a return to the Gold Standard is not a good idea. Leaving the gold standard after the Great Depression meant the US economy recovered. Similarly in the UK, a return to the gold standard would not help the government to deal with the debt of the country, which would be dealt with by inflation.
The current system of boom and bust is a far cry from the Gold Standard. There are arguments for both systems of economy and Robert Zoellick is only the most recent defender of the Gold Standard.
Gold share prices have risen steadily in recent months. There are a few fluctuations, the price peaked early November and has since settled down, however the upward trend shows no signs of stopping. Some analysts predict that gold will continue to grow in value. People looking to buy gold for the first time can invest in coins or bullion.
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