The Gold Standard versus Fiat Currencies: An Overview
Kayle Becker- Guest Writer
If you have been paying any attention to news headlines recently, then you must be aware of how many governments all over the world are reacting, in economic and financial terms, to the devastating coronavirus pandemic. One must not look far to encounter articles titled, “Coronavirus: Bank pumps ￡100bn into UK economy to aid recovery”, “Central Banks Pump More Cash Into Economy to Fight Recession”, or “With $2.3 Trillion Injection, Fed’s Plan Far Exceeds Its 2008 Rescue” along with a slew of many similar headings. Reading headlines like this might be confusing; you must wonder ‘how is the government able to just print money?’ or ‘what are the implications of printing mass amounts of money?’. It may help to understand how the monetary system has changed over the last 100 years in order to grasp how governments are able to print money and how citizens are impacted.