Nobody worked because their dollar changed value 3x per day, usually inflating up such that if you agreed to a day's work at $5 and $5 bought a loaf of bread, by noon $5 was worth half a loaf and by quitting time maybe a couple slices.
The 'value' of our currencies change every minute against a whole bunch of other currencies.
All this does is promise the bearer a fixed amount of gold in exchange for their promissory note. The FX exchange to other currencies will balance out and adjust just the way it does today with oil prices.
Oh, I don't doubt that was what happened (regarding the inflation) I just don't think it relates to pegging the dollar back to a fixed amount of gold is all.
Isn’t this a return to the gold standard?
Yep that's how bad it got in Zimbabwe.
Nobody worked because their dollar changed value 3x per day, usually inflating up such that if you agreed to a day's work at $5 and $5 bought a loaf of bread, by noon $5 was worth half a loaf and by quitting time maybe a couple slices.
I don't think that's how it works.
The 'value' of our currencies change every minute against a whole bunch of other currencies.
All this does is promise the bearer a fixed amount of gold in exchange for their promissory note. The FX exchange to other currencies will balance out and adjust just the way it does today with oil prices.
That's how it was described to me by the people I was with at the time anyway.
Oh, I don't doubt that was what happened (regarding the inflation) I just don't think it relates to pegging the dollar back to a fixed amount of gold is all.