This helped me understand:Explain to me like I’m 10 years old..
the gold standard currency vs money
Basically, the nation/global currency is tied to the value of Gold rather than whatever the Reserve Banks decide. So at the moment the Federal Reserve print money whenever they want and just randomly decide what to do with Interest Rates. Under Gold, there is no extra printing nor randomness when deciding interest rates. At a time like this it makes sense because inflation is just out of control and something has to give. However I'm pretty sure the US would be an absolute powerhouse on trade again as they hold most of the Gold (I think?) and they have the most pull forcing other countries to transact in USD.
Money would still remain the same, we'd still use AUD and paper money would still be around, there's just something else deciding what value it holds, rather than someone else.
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