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A comment on The Unwinding of the Asian Currency Crisis. Parent comment

Re:The Unwinding of the Asian Currency Crisis by lupin_sansei on Sunday September 23, 2007 @11:20PM (#58731)
You've made the mistake of assuming that more wealth (economic growth) requires a greater quantity of money. It doesn't. Money is just the exchange mechanism. If the amount of gold in the world stays static, but we improve our economies it would just result in prices falling.

If we could not find more gold we could still have economic growth, it's just that the value of gold would rise relative to the goods it could buy. (ie prices would fall)

You can read more here: http://www.mises.org/mmmp/mmmp5.asp

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Re:The Unwinding of the Asian Currency Crisis by davidw on Monday September 24, 2007 @04:29AM (#58807)
I'm by no means an expert, but a lot of mainstream economists don't seem to abide by this view. They could be wrong, of course, because mainstream doesn't always mean correct, but the burden of proof is on the 'gold bugs'.
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