Commerce student or not, we've all heard of the 'Gold Standard' - but what is it?Learn Liberty is a great YouTube channel for beginners to economics and finance. These days, a lot of these concepts are almost required knowledge - lest you
Don't worry, Daily Quoters - we've got this concept covered.
Today's Daily Quota is a video titled What is a Gold Standard? presented by Prof Lawrence White of the George Mason University. It goes for less than 5 minutes, and provides a simplified overview of the concept of gold standard, the concept of fiat currency (our current standard) and some significant dates since its abolition in the 1930's.
This video's underlying message seems to promote the Gold Standard above the Fiat Currency Standard, noting the latter's lack of market control and vulnerability at the hands of a few people that tend to control it. Basically fiat money has no intrinsic value, and it is easily manipulated.
Here's a Fun Fact: Under the Gold Standard, the highest inflation rate ever reached, during the Gold Rush of the 1890's, was around 1.5%.
Interesting stuff!
WATCH IT HERE
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