THE NATIONALIZATION OF CURRENCIES IN THE "GOLD STANDARD" SYSTEM

This article was written following the Gold Standard suspension by the United States in March 1933. The author discusses the correlation between the sharp decrease drop in the price of goods and the parallel increase in the price of gold, suggesting that the these processes are rooted both in the us...

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Bibliographic Details
Published in:Rivista internazionale di scienze sociali 2011-07, Vol.119 (3/4), p.357-368
Main Author: Comaschi, Carlo
Format: Article
Language:English
Subjects:
Balance of trade
Commercial production
Commodities
Countries
Currencies
Currency
Essays
Exchange
Gold
Gold standard
Industrial plants
International trade
Money
Multilateral relations
Nationalization
Prices
Purchasing power
Regulation
U.S.A
Uncertainty
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Summary:This article was written following the Gold Standard suspension by the United States in March 1933. The author discusses the correlation between the sharp decrease drop in the price of goods and the parallel increase in the price of gold, suggesting that the these processes are rooted both in the use of gold as true currency, rather than as a standard of value for all national currencies, and in the huge demand for gold as a store of value in times of uncertainty. The author proposes the institution of a Gold Bullion Standard, with the issue of legal tender money still regulated by gold possession; actual circulation and convertibility of gold should however be banned and gold should be used as a medium of international exchange only. Moreover, he points out the need for the establishment of a system of multilateral clearings in order to restart international trade and foster economic recovery on a sounder basis.
ISSN:0035-676X
1827-7918
DOI:10.1400/209774