Abstract
IN a pamphlet entitled "A Managed Gold Standard“(W. Hefler and Sons, Ltd., Cambridge), E. A. Moyer urges that unemployment and economic distress are due to lack of purchasing power. The State's lack of purchasing power has necessitated higher taxes, which have further decreased the citizen's purchasing power. This lack of purchasing power is due to lack of counters, or money, vised for exchanging one man's labour for another's, caused by the inability of an inflexible money standard to keep pace with a continuous rise in prices. He advocates accordingly a managed gold standard based on the monopolization by the State of the note issuing bank of the standard (gold), and the fixation of the standard's money value by an international commission which should revise this value periodically according to the need of the world's productive ability to ensure the standard's flexibility. The managed standard will instantly increase the purchasing power of the State by increasing its right to issue counters without risk of devaluation, and this increased purchasing power by permitting decreased taxation will increase the purchasing power of the citizen as well as thus stimulating industrial and commercial prosperity. Unemployment will be further diminished or eliminated by the increased ability of the State to initiate public works. The managed gold standard could be introduced if a few countries only agreed to do so, since other countries would be bound to follow.
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Purchasing Power with a Managed Gold Standard. Nature 140, 354 (1937). https://doi.org/10.1038/140354c0
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DOI: https://doi.org/10.1038/140354c0