eli5: How does an economy grow if the money supply doesnt increase in that same year? In gold standard suppose, gold reserves are not increased but economy still manages to grow. How is that possible, how is an economy growing on a stable money supply?

Question

eli5: How does an economy grow if the money supply doesnt increase in that same year? In gold standard suppose, gold reserves are not increased but economy still manages to grow. How is that possible, how is an economy growing on a stable money supply?

In: 339

Answer 1

The Gold standard doesn’t really exist. $1 gold = €1. Its only the confidence people have in that currency, and that confidence is running out as inflation (whereby that $1 actually buys you less) coupled with increasing prices, and generally people fucked off with life, worldwide, with politicians who, have no plan from the start “know its a high paying job” that’s hitting! (Is this a new thing? History/Present)