World Monetary System: Returning to the Gold Standard
Abstract
As long as the temple of science does not totter, the quality of its foundation is not discussed. So it was until the collapse of the world financial pyramid built on the “dollar standard” has not shown that it is time to look at the theoretical and methodological framework of the current world monetary system. The article discusses the need to return to the classical terms of political economy, to put upside down the architecture of the global monetary system based on the solid foundation of the gold standard. The article puts into question the methodology of the “Guidelines for the balance of payments”, imposed by the IMF on all countries, which serves financing of the current account of the defi cit countries (U. S., EU). It calls for use of the reserve assets of surplus countries (Kazakhstan, Russia, China and others) for diversification of their domestic economy instead of purchasing of securities of deficit countries. The author explains the necessity of return to the gold standard in order to stop uncontrolled money issue. The article calls for the use of gold as the global reserve currency and explains why gold parities of the national currencies are needed. The author proposes to discuss introducing of gold as a world currency at the G-20 summit and to form a Gold Union.
Keywords:
Gold price, Gold reserves, Gold parities, Gold Union
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Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.