Caixin
Mar 27, 2018 06:05 PM
OPINION

Opinion: Will Central Banks be ‘Crucified on Cross’ of Cyber-Gold?

In 1896, the American populist politician (later Secretary of State) William Jennings Bryan made his famous statement attacking the gold standard with his rallying cry, “you shall not crucify mankind upon a cross of gold.”

Throughout the 1930s, the gold standard (and central bankers who advocated the gold standard) earned a bad name because the fixed price against gold brought about deflation. As the supply of gold was limited whilst demand increased with trade, the price of other goods had to shrink, creating deflation. Global prosperity (and inflation) came about when central bankers abandoned the gold standard, first in the 1930s, and again after 1971, when the US floated the dollar and de-linked it from gold.

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