Question

Do you think an international monetary system with currencies valued on the basis of gold would work today? Why or why not? Do you think implementing a global version of the old European monetary system would work today? Why or why not?

Answer 1

International monetary system with currencies valued on the basis of gold would not work today in the globalised world because-

1. There are high export and import ( Trade) between different countries and it is beyond gold.

2.The unequal distribution of gold makes gold more advantageous for those countries who produce gold

3. Gold standard acts a limit on the economic growth and didn't allow the Economy to flourish.

4.It is historically related with high short run price volatillity so it has a narrow approach.

No , implementing a global version of the old European monetary system would not work today because the counties are not operated in other continent like Europe. There is higher level on independence in trade and central policy. It is not acceptable because the Different countries doesn't promote free Trade and there are lots of trade restrictions as well.