Question about how the free market can work with a gold standard?Submitted by an_eddie on Wed, 01/16/2013 - 04:13
I keep getting into conversations/debates about free market principles and the gold standard. But Im never really effective because I don't fully understand either one.
A) To have a gold standard, does this mean the money supply will always be finite? Or will gold simply be added to the treasury to match the GDP?
B) I keep hearing about how there is not enough gold to go back to the standard. Im pretty certain there is some fallacy or misunderstanding of economics here. Can someone explain this?
C) When, if ever, should the government introduce new money into the market? Should it rise and fall in correlation with the GDP?
D) When it comes to free markets, the argument against it ultimately comes down to free markets leading to monopolies and the notion of letting people die. These are all too common. But what are the arguments against these?