Schneider

A Dose of Luster. How a Full Schneider

Scholarly Research paper from the year 2012 in the subject Economics - Finance, , course: Policy Exchange, language: English, abstract: The challenge presented is to answer the following question: If member states leave the Economic and Monetary Union, what is the best way for the economic process to be managed to provide the soundest foundation for the future growth and prosperity of the current membership? The world is suffering from an ailment known as fiat money, and the eurozone is experiencing the most debilitating symptoms. The ailment's cure may be the implementation of a full gold & silver standard along with revisions to the Maastricht Treaty and to the Stability and Growth Pact that would incentivize member states to adopt fiscal prudence and to nurture sound economies. In order to efficiently and effectively support such an argument, this paper must first discuss the problems inherent to fiat money. It will explain why money backed solely by a promise inevitably leads to economic hardship. The paper will then argue the case for money fully backed by gold & silver, providing evidence of its stability and conduciveness to economic prosperity. Furthermore, the paper will specify conditions that would be essential in fostering a full precious metals standard. Most importantly, the paper will argue that to provide the soundest foundation for the future growth and prosperity of the eurozone, member states must remain united. ...