Minimizing Resource Costs Under a Gold Standard: From Warehouse Deposits to Deposit Banking

Journal of Economics and Finance Education, 9(2) Winter: 1-5, 2010

5 Pages Posted: 7 Aug 2015

See all articles by Edward Peter Stringham

Edward Peter Stringham

Trinity College; American Institute for Economic Research

Date Written: 2010

Abstract

One of the criticisms of the gold coin standard is it entails more resource costs than other systems. Why after all should people have to carry around bags of gold for each transaction and pay to have so much of it stored in vaults? In this piece I will discuss the options of one famous lover of gold, Scrooge McDuck, and discuss how the storage cost criticisms of gold money are unwarranted. A system can easily evolve from one where people held coins to one where they loan their commodity via bankers and earn interest thereby eliminating the large need to store or handle the actual commodity.

Suggested Citation

Stringham, Edward Peter, Minimizing Resource Costs Under a Gold Standard: From Warehouse Deposits to Deposit Banking (2010). Journal of Economics and Finance Education, 9(2) Winter: 1-5, 2010. Available at SSRN: https://ssrn.com/abstract=1945860

Edward Peter Stringham (Contact Author)

Trinity College ( email )

Hartford, CT 06106
United States

American Institute for Economic Research ( email )

PO Box 1000
Great Barrington, MA 01230
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
23
Abstract Views
206
PlumX Metrics