The gold standard functioned as a self-imposed discipline device on central banks and politicians: it prevented running the printing presses because excess paper relative to gold stocks would raise the risk of a speculative run, and this credibility was reinforced by gold's independent uses and the impossibility of inflating its supply.

causalpending

Speaker

Douglas Irwin

Evidence Quote

gold standard is a discipline that the central bank imposed on itself

Source

Douglas Irwin on the Great Depression and the Gold Standard 10/11/2010EconTalk
Created: 6/15/2026, 9:36:56 AM

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