Switch to gold standard could stabilise prices – Philadelphia Fed research

Hypothetical return to monetary system would only lead to short-term price movements, study finds

gold-nuggets-gold-gold

Long-run price stability could be a key feature of the gold standard, researchers with the Federal Reserve Bank of Philadelphia find. 

In their working paper, published in February, Jesús Fernández-Villaverde and Daniel Sanches explore how the gold standard would operate as a monetary framework in a hypothetical small open economy economy. 

They argue that the price level would consistently converge to its long-run equilibrium value. Inflation and deflation would be “merely temporary phenomena”

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.