The Gold Standard: From Scorn to Scrutiny – The Renewed Interest in a Once-Discredited Economic System

The gold standard, a monetary system that once held contempt by economists and financial officials, was the United States’ currency for 180 years until the early 1970s. During this time, the country experienced significant economic growth without inflation. However, after the dollar’s tie to gold was severed, economic growth rates fell by about one-third. Despite its historic success, there has been universal scorn for the gold standard in recent years. Central banks have been buying gold at a record pace, indicating a potential shift in attitudes towards the precious metal. Events have a way of bringing once unthinkable ideas to the forefront, and it seems that there are unmistakable signs of change regarding the role of gold in the global economy. This segment of What’s Ahead delves into these signs and the potential implications of a renewed interest in the gold standard.