Gold Bullion Investment

A Program for Monetary Reform 03 Stable Buying Power

A PROGRAM FOR MONETARY REFORM The Standard of Stable Buying Power (2) Several of the leading nations now seek to keep their monetary units reasonably stable in internal value or buying power and to make their money supply fit the requirements of production and commerce. In the determination of a nation’s monetary policy, the needs of its domestic economy have taken the place of the arbitrary rules of the gold standard. After the experience of the past decade, it is improbable that many countries will want to give their currencies arbitrary gold values at the cost of domestic deflation and depression. At present healthy domestic economic conditions are generally given precedence over the maintenance of a fixed money value of gold. This is a great step forward. The countries which have consistently followed this new line have more nearly solved their depression problems than have those that have sought to compromise by permitting considerations other than domestic welfare to determine their monetary policies. And for the United States stability in the domestic purchasing power of the dollar is certainly of far more importance than stability in its exchange value in terms of foreign monetary units. (3) Some countries, especially the Scandinavian and others included in the so-called “Sterling Bloc”, have gone further than the United States in formulating and in carrying out these new monetary policies. On abandoning the gold standard in 1931, the Scandinavian countries took …

Tags: Buying, Monetary, Power, Program, Reform, stable