There’s no reason to limit the money supply (and really, the size of the economy) to the amount of some shiny yellow metal we can dig out of the ground.
“There’s no reason to limit the money supply (and really, the size of the economy) to the amount of some shiny yellow metal we can dig out of the ground.”
That was never how the gold standard operated. When Hamilton pledged to pay interest in America’s debt in gold that immediately bid up the value of the Continental dollar equal to gold. It is the willingness to exchange gold for dollars that is at issue, not a quantity of specie equal to the money supply.