The US dollar has been the world's dominant reserve currency for decades, but its future is uncertain amid concerns about inflation, economic instability, and geopolitical tensions. One proposed solution to these challenges is to return to a gold-backed currency, which would provide a stable store of value and limit inflationary pressures. However, implementing a gold standard is not without challenges, including the need for significant gold reserves, limitations on monetary policy flexibility, and potential deflationary pressures. This paper explores the potential advantages and disadvantages of a gold-backed US dollar, as well as the practical considerations for implementing such a system. Alternative monetary systems, including fiat currencies, commodity-backed currencies, and crypto currency, are also examined. In addition, this paper analyzes the political feasibility of establishing a gold standard in the US and public opinion on the matter. Two linear models are presented to apply to the US dollar and the gold standard.
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Journal of Business & Financial Affairs received 1726 citations as per Google Scholar report
