Maybe someone on this forum can explain something about monetary policy to me. If the currency is linked to a specific precious commodity (gold, or whatever), then how does the money supply expand? Does it require that gold be mined and deposited in some Ft. Knox type deal? I admit that I really don't understand this stuff, and have never studied macro-economics, so I'm hoping someone here can provide a link that explains exactly how a modified gold standard would work.
It seems like if the money supply was locked, then all economics becomes a zero-sum game. You can't get rich, without making someone else poor. What am I missing here? Money sure is weird.