What would a gold standard look like?
Imagine a world where national currencies are simply names denoting specific weights of gold. If the dollar is defined as 1/10,000th of an ounce of gold, the gold price is $10,000/oz.
When a currency’s supply rises (thus risking inflation), holders of that currency will exchange it for gold, lowering the money supply and raising the currency’s value. Voila, inflation gone and the 1% stripped of (at least some of ) its omnipotence.
In that world, former rock star central bankers are simply bank tellers who exchange gold for dollars and dollars for gold — and that’s it. Their main job — and that of the Fed — will be a continuous, monotonous series of modest transactions. It’s really that simple.
And no one will know the central bankers’ names.
