Stability of Gold Standard and Its Selected Consequences

The gold standard was quite stable in the past: price level changes were relatively small, and trade cycles mild. However, its past stability does not guarantee nowadays. We show that of to shocks stemming from world market depends critically on size monetary stock relative extent these shocks. Every change decreasing lowers stability. discuss some consequences thesis too: first, any system economizing reserves (e.g. mature fractional reserve free banking Scottish type) may undermine standard. Second, an attempt reestablish have include a collective action many countries great economic power. If single small country tried resume gold, would probably be tiny shocks, economy could destabilized by It makes return rather improbable near future.
 Key words: Gold Standard, Stability, Inflation, Trade Cycle.
 JEL Classification: E31, E39, E42, N10.