My words imply it has once "gone wrong". I have no knowledge of the gold flow having messed with the gold standard significantly. I only hypothesize it could go wrong (and subconsciously apply murphy's law).
Lewis 2011/9/25 James A. Donald <jam...@echeque.com> > On 2011-09-26 5:13 AM, lodewijk andré de la porte wrote: > >> The gold standard was fine as far as I know, as long as the gold flow was >> steady. >> > > And when the gold flow was not steady, inflation and deflation was > generally less than 1% a year. > > I conjecture that the expectation that value of the currency would remain > stable in the long term stabilized the value in the short term - that when > there was asset inflation, people started to prefer to store value in gold, > and when there was asset deflation, people started to prefer to store value > in other things, such as housing, whereas the present value of fiat money is > destabilized by the fact that its future value could drop a great deal. > > ______________________________**_________________ > cryptography mailing list > cryptography@randombit.net > http://lists.randombit.net/**mailman/listinfo/cryptography<http://lists.randombit.net/mailman/listinfo/cryptography> >
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