Boom/Bust And Inflation Under A Gold Standard.

What about intent?

Gold or any commodity money has to be intentionally chosen to be used for the purpose of serving as a medium of exchange (while some of it may be used for other uses). If the intent is to increase the money supply then relative prices will change (inflation). If the intent is to alter the capital structure then a boom/bust cycle may result (most probably will) unless for some reason such a natural entrepreneurial guess is by chance correct.

Again we return to intent.

If the intent is to alter the capital structure as a result of either ego-driven interpretation or ego-driven intervention it is inevitably bound to cause a boom/bust cycle. That kind of corruption cannot find compatibility in an economy in its pure form.

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