I plan on picking up econ as a minor because stuff like this intrigues me.
Anyway, with a commodity backed currency, say gold for example....how do exchange rates work? Aren't they fixed if both countries back their currency with the commodities like gold?
i.e. if U.S. sets a dollar at an ounce of gold, and U.K. sets a £ at an ounce of gold, then exchange rate is $1 per £1 right?
So the market would never be in control of exchange rates....?
Site Information
About Us
- RonPaulForums.com is an independent grassroots outfit not officially connected to Ron Paul but dedicated to his mission. For more information see our Mission Statement.
Connect With Us