Český finanční a účetní časopis 2011(3):47-67 | DOI: 10.18267/j.cfuc.116

The Role of Gold in the Monetary System

Zbyněk Revenda
Prof. Ing. Zbyněk Revenda, CSc. - profesor, Katedra měnové teorie a politiky, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <revy@vse.cz>.

In recent years, as a result of the financial crisis, several proposals have been put forward to restore some role for gold in the monetary system. In particular, there has been a proposal to employ gold as a nominal anchor or asset for the exchange rates between the most important and tradable currencies in the world. This suggestion, along with alternatives is analyzed in the article. The author describes different historical systems of money, the gold standard and, using concrete figures, the potential role of gold in backing-up issued money. It is the author's conviction that the role of gold in the monetary system inevitably belongs to history.

Keywords: Banking regulation and supervision; Central bank; Currency board; Exchange rate; Gold; Gold standard; History of money; Legal tender.
JEL classification: E42, E5, G2

Published: October 1, 2011  Show citation

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Revenda, Z. (2011). The Role of Gold in the Monetary System. Czech Financial and Accounting Journal, 2011(3), 47-67. doi: 10.18267/j.cfuc.116
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