[DoodleDawg]

We could set the dollar/gold ratio at, say, $1,100 an ounce. If the price rose above that level, it would mean there was too much money in the economy, and the Fed would tighten. If it dropped below, the Fed would ease.

Since qold futures trade on a number of commodities markets then wouldn't the price of gold fluctuate daily? And wouldn't the Fed be tightening then loosening then tightening the supply of money hourly?

[marron]

If the dollar is pegged to gold, then gold would not fluctuate in dollars at all. It would, however, fluctuate in terms of all other currencies not either pegged to gold or to the dollar. Which it does anyway.

[Jim W N]

No. Unstable commodity prices come from an unstable, weak dollar that is not fixed to a standard value. History shows that the gold standard made the dollar a reliable and stable currency and brought growth to our economy.

[Kozak]

We would need to set the price at 64,000 an ounce to cover all the dollars we have floating out there......