(December 23, 2010 at 12:32 am)Moros Synackaon Wrote: It is silly to switch economic systems when things are not solid and healthy enough to tolerate change.
Has any country switched to this economics system and thrived?
And I mean thrive.
The US was officially on a gold standard from 1900 till 1933, which we abandoned to stop the boom & bust cycles that were occurring. Private gold ownership was outlawed, with the exception of jewelry. We then went to the Bretton-Woods system that Keynes helped develop. After a few decades of that Nixon ended the fixed trading of gold which created the original "disconnect" between our currency & something tangible to back it.
Quote:"Because economies under the gold standard were so vulnerable to real and monetary shocks, prices were highly unstable in the short run. A measure of short-term price instability is the coefficient of variation, which is the ratio of the standard deviation of annual percentage changes in the price level to the average annual percentage change. The higher the coefficient of variation, the greater the short-term instability. For the United States between 1879 and 1913, the coefficient was 17.0, which is quite high. Between 1946 and 1990 it was only 0.8."
"How is it that a lame man does not annoy us while a lame mind does? Because a lame man recognizes that we are walking straight, while a lame mind says that it is we who are limping." - Pascal
