Thus said "Daniel C." on Thu, 04 Dec 2008 14:59:40 EST:

> It also doesn't solve the  problem of inflation* because a gold-backed
> dollar  (assumed to  represent  one "division"  of  gold) would  still
> become worth  less and less  as the  standard division of  gold became
> smaller and smaller.

That's actually backwards.  As more and more goods  entered the economy,
gold would gain more and more purchasing power (i.e. smaller units of it
would be able to purchase more goods).

Andy
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