“If a big country like the United States did return to the gold standard, it would start a great deflation. Most likely the government couldn't stick to it for long. They'd switch the policy to some halfway measure like a gold exchange standard.”

— Friedrich Hayek

1980s and later, Interview in Silver & Gold Report (1980)

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Friedrich Hayek 79

Austrian and British economist and Nobel Prize for Economic… 1899–1992

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“If the world as a whole returned to the gold standard there would be such fluctuations in the value of gold that it would very soon prove impractical.
Today an international gold standard could only mean that a few countries would maintain a real gold standard. The other countries would hang on to the system through a gold exchange standard — where the currency isn't really redeemable in gold but the government attempts to keep a fixed rate between its currency and gold.”

Friedrich Hayek (1899–1992) Austrian and British economist and Nobel Prize for Economics laureate

1980s and later, Interview in Silver & Gold Report (1980)

“An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense—perhaps more clearly and subtly than many consistent defenders of laissez-faire—that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

Gold and Economic Freedom http://www.constitution.org/mon/greenspan_gold.htm 1966
1950–60s

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.”

Alan Greenspan (1926) 13th Chairman of the Federal Reserve in the United States

Gold and Economic Freedom http://www.constitution.org/mon/greenspan_gold.htm 1966
1950–60s

“In truth, the gold standard is already a barbarous relic.”

John Maynard Keynes (1883–1946) British economist

A Tract on Monetary Reform (1923), p. 172
Context: Those who advocate the return to a gold standard do not always appreciate along what different lines our actual practice has been drifting. If we restore the gold standard, are we to return also to the pre-war conceptions of bank-rate, allowing the tides of gold to play what tricks they like with the internal price-level, and abandoning the attempt to moderate the disastrous influence of the credit-cycle on the stability of prices and employment? Or are we to continue and develop the experimental innovations of our present policy, ignoring the "bank ration" and, if necessary, allowing unmoved a piling up of gold reserves far beyond our requirements or their depletion far below them? In truth, the gold standard is already a barbarous relic.

“There is another and very important ground for standardization and that is the desirability of having parts interchangeable. Standards of exchange have long been in general use, and these have, most usually, been fixed with a view to convenient use rather than on a scientific basis. The units of weight and measure are examples of this form of standard. They may not even be the most logical, or most convenient, but once established they can, in general, be changed only by slow degrees, if at all.”

Dexter S. Kimball (1865–1952) American engineer

Source: Principles of industrial organization, 1913, p. 42

“Are the solutions offered us always to be too late? Shall we in Great Britain invite three-quarters of the world, including the whole of our Empire, to join with us in evolving a new currency system which shall be stable in terms of commodities? Or would the gold standard countries be interested to learn the terms, which must needs be strict, on which we should be prepared to re-enter the system of a drastically reformed gold standard?”

John Maynard Keynes book Essays in Persuasion

Essays in Persuasion (1931), The End of Gold Standard (1931)

“Measuring national prestige by gold medals is like using Viagra to judge the potency of a man.”

Ai Weiwei (1957) Chinese concept artist

“ Gold Is Not the Real Measure of a Nation http://www.guardian.co.uk/commentisfree/2008/aug/25/olympics2008.china,” Guardian, August 25, 2008.
2000-09, 2008

“The mine owners "did not find the gold, they did not mine the gold, they did not mill the gold, but by some weird alchemy all the gold belonged to them!"”

Bill Haywood (1869–1928) Labor organizer

Haywood, William D. The Autobiography of Big Bill Haywood. New York: International Publishers, 1929, p. 171.

“The dreams of "leaving it up to the market" or of returning to a politically neutral gold standard cannot succeed because the nature of the monetary system has a profound impact on the interests of powerful groups and states. Affected groups and states will always try to intervene in the operation of the system to make it serve their interests.”

Robert Gilpin (1930–2018) Political scientist

Source: The Political Economy of International Relations (1987), Chapter Four, International Money matters, p. 170

“they possess most gold and silver, by which war, like everything else, flourishes.”

Thucydides History of the Peloponnesian War

Book VI, 6.34; "they have abundance of gold and silver, and these make war, like other things, go smoothly" ( trans. http://www.classicpersuasion.org/pw/thucydides/jthucbk6rv2.htm Benjamin Jowett)
History of the Peloponnesian War, Book VI

“If a big country like the United States did return to the gold standard, it would start a great deflation. Most likely the government couldn't stick to it for long. They'd switch the policy to some halfway measure like a gold exchange standard.”

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Friedrich Hayek 79

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