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What would be benefits of reverting back to gold standard

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Question - Most Western nations were on the gold standard for currency exchange rates from 1876 until 1914. Today, we have several different exchange rate regimes in use, but most of the larger economy nations have freely floating exchange rates and are not obligated to convert their currency into some predetermined amount of gold on demand. In certain political circles you may hear a call for the "good old days" and a return to the gold standard.

What would be the benefits of reverting back to the gold standard?

What would be the challenges?

If you controlled global monetary policy what would you do?

Reference no: EM133013955

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