How the classical gold standard fueled the rise of the state

MisesWire/Ryan McMaken/12-16-2021

“Yet it is also easy to overstate the degree to which the CGS can be described as laissez-faire or as a system that truly works against the interests of state power. In fact, the classical gold standard was key in solidifying state control over national monetary systems. This was understood by the nationalists of the time, who viewed the gold standard as an instrument of increasing national prestige, sovereignty, and state power.”

USAGOLD note: The gold standard, as it turns out, can be abused just as easily as the fiat money standard. McMaken addresses the history of the classical gold standard and how it led to “a more homogenized monetary order controlled by the state.” McMaken offers much for the reader looking to take a deep dive into a little-explored, but important chapter of monetary history.