The Gold Standard: Retrospect and Prospect

“In general, the gold standard effectively managed the money supply to stabilize the purchasing power of money over time. This was no accident.” ~Peter C. Earle and William J. Luther

On August 15, 1971, President Richard Nixon closed the gold window, thereby preventing foreign governments from converting United States (U.S.) dollars into gold.

The Nixon shock created a clear dividing line in American monetary history. Prior to August 15, 1971, the U.S. dollar had been tied to gold in one way or another since the nation’s founding.

Fifty years after the Nixon shock, it is difficult for many to imagine a dollar connected to gold. Most Americans have never used a gold-backed dollar. They do not understand how the gold standard worked. They have not considered the merits of returning to the gold standard. The gold standard, in their minds, is a relic of a bygone era.

The contributions in this volume help to bridge the knowledge gap created by fifty years of fiat money.

The American Institute for Economic Research in Great Barrington, Massachusetts, was founded in 1933 as the first independent voice for sound economics in the United States. Today it publishes ongoing research, hosts educational programs, publishes books, sponsors interns and scholars, and is home to the world-renowned Bastiat Society and the highly respected Sound Money Project. The American Institute for Economic Research is a 501c3 public charity.