Sadullaeva A.P., Ablakimova Zh.
Kazakh National University named after al-Farabi
"The
gold standard" as world currency system
Today in the world the question of
adoption of the gold standard as world currency system is considered. Likely much know that increase of the price
of dollar that led to devaluation for this day is the reason of it.
Without paying attention that for many centuries of a
condition of human life and its value considerably changed, gold all as is in
the price. In the conditions of crisis,
any citizen of our country will invest money in precious metal, than in the
large enterprise rather.
When the currency
goes down in price, all your securities strongly become cheaper, and deposits
in bank are devoured by inflation – many people find the rescue in gold. Only
for last some year gold considerably grew in price that allowed investors who
enclosed earlier the accumulation in gold, to earn to ninety percent of net
income. However such unimaginable profitability from gold can be expected only
at very quite good calculation and truly chosen tactics because if you simply
buy up many gold products – that you will make the silliest mistake in the
life. But at the correct deal you get profit as gold doesn't go down in price.
Here it would be desirable to note advantages of
"the gold standard" or introduction gold as world currency system:
• relative high cost,
• durability, stability at storage,
• divisibility and jointness,
• possibility of identification on
color, weight, malleability degrees, to acoustic properties.
As we know a turn gold stopped 1971 and refusal of the
gold standard and transition to modern monetary policy — this one of key
macroeconomic inventions of the XX century. But it isn't necessary to forget
that among not economists in recent years conversations on the gold standard
became the extremely popular. One of leading candidates from Republican Party
of the USA in presidents - Ron Paul - made the gold standard a key question of
the election program. Why appeals to return to the gold standard became so
widespread right now?
The answer is very simple - crisis of 2008, bankruptcy,
apparently, financial institutions and decrease in ratings of the leading
western countries aggravated a question of "safe assets". Safe assets
play an extremely important role in economy. Demand for safe assets is in any
economy. For this reason now — at huge budgetary problems in America and Europe
— the American and German bonds manage to be placed under zero profitability.
After all these papers are perceived by investors as risk-free.
It would seem, it
is easy to solve a problem of safe assets just by means of introduction of the
gold standard. After all gold — unlike paper money — is a real asset.
Unfortunately, everything isn't so simple. Let's say that the dollar is
attached to gold at a rigid course — for example as it was till 1971, at the
level of $35 for ounce or at the level of the today's prices (in 45 times
more). In this case from the point of view of a purchase power in gold grams
dollar it will be valid a risk-free asset — it always will cost exactly so many
grams of gold, how many is declared. The problem that from the point of view of
economy it is senseless — after all gold doesn't play a big role neither lives
of house farms, nor in activity of the enterprises. The total amount of
consumption of gold in the jeweler industry — about $80 billion a year, in
other industries — $15-20 billion. It is a small share of world gross domestic
product and barter. For comparison: in the world it is got oil on $3 trillion a
year (if to consider at world market prices).
But neither oil,
nor gold in itself aren't a key consumed product - both house farms, and the
enterprises consume a wide basket of products and services. Therefore a safe asset what profitability is
predictable not in relation to any one product, and on the relation to all
consumer basket (or, for example, to the basket making gross domestic product
of the country).
On these indicators for the last five years purchasing
power of dollar practically didn't change. At the same time, if to measure
purchasing power of dollar in ounces of gold or oil barrels, it changed many
times. It is clear that this way is unreliable. Despite all this, gold is much
more risky asset, than paper dollar.
In the conclusion it would be desirable to tell that
application of the gold standard non-optimal for our time. You could be convinced of it on the
above-stated examples. The are some
reasons: lack of the general quantity
gold as gold is impossible to create (at world level large turns of money)
; the overall price level only is
stable when the relative price of gold and other goods and services is
stable; and at the end gold simply
isn't the main product in a household and in the enterprise.
Certainly it is impossible to note and advantage of the
gold standard, but in total plus is only that that it can stop dollar
"invasion". But it isn't the
basis use of the gold standard. We
can't lean only on it.
In our opinion, the only exit from devaluation of dollar
is an introduction of new world currency system. Certainly it is improbable to
introduce new currency system for short time, but it is already possible to
consider this question and to weigh pluses and minuses, in case of introduction
of new currency system.
2. http://xn--80ahcnbhkpdfs1a.xn--p1ai/investing/gold-invest.html.