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  • Why Does the United States Have an Inconvertible Money Standard?

     

    Essays1 Economics

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ID number:312797
 
Evaluation:
Published: 03.12.2002.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

The United States economy has an inconvertible money standard, due to the fact of two main reasons; the first reason is that the United States cannot possibly backup the dollars of the growing economy and the growing population of the nation. The second reason is that gold is a very scarce resource and gold cannot be produced or created, it occurs naturally in the earth. To begin with, gold had a value of 1/20.67 of an ounce for every dollar when there were several million people in the United States. …

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