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Tons of resources for understanding how the classical gold standard worked. I could write up a good list, but I'll always recommend Better Money by Larry White.
Why mainstream economists were convinced that an informed fiat monetary policy could outperform gold is a combination of
- wrong ideas about macroeconomic stability, bailouts, and informationally superior central planners (+drawbacks and limitation of gold)
- psychology of runs, fragile banking system, no way to conjure up new base money fast (not realizing that not doing that is the point of a long-term successful and flourishing money)
- evil, megalomaniac desire for control (hashtag tinfoilhat)
- mistaken ideas about a deflation-inducing currency, money velocity, and debt
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Thanks. I believe you, but I need to be able to articulate it in my own head and with my own words.
Just took a look at Better Money. Think i'll pick this up. Too bad there's no audiobook version! (I get 90% of my "reading" done on audiobook now)
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Best of luck! It's a dense, difficult reading, but it's the best rendition of various moneys.
(Too many mainstream economists don't understand gold... even fewer bitcoin, so it's tricky)
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Isn't that basically what we had with the gold standard?
To be honest, I need to brush up on my monetary history. In particular, I need to understand the historical problems with the barbarous relic that make so many mainstream economists skeptical of returning to it. And I need to be able to make the case of why Bitcoin wouldn't fall into the same traps.
Got any recommendations?