Devils_Advocate Posted September 27, 2008 Report Share Posted September 27, 2008 First - I'm not very well versed in economics, and I was wondering if anyone who was willing could explain to me exactly how currency would work in a complete laissez faire state. I know that private banks or mints would issue money, and that they would issue gold backed currency, because people aren't just going to accept any banks piece of paper. But how would private currencies work in other countries? And exactly how does a gold standard work - I know that each dollar equals an amount of gold, but in terms of trade and currency exchange, how does gold currency follow the law of supply and demand and how would that law change when applied to private currency. And I've read that gold standard meant lower incomes and higher unemployment back when it was used. Why is that? And what if lots of people begin to accept paper money from some bank - how does it work out then? If anyone could explain how a laissez faire currency would work, or recommend any resources on the subject, that would be great. Second - just a quick question - are the WTO and the G8 capitalist organizations? I don't think they are, because they're politicians meeting and negotiating with other peoples rights, but I don't pretend to have enough understanding of their dynamics to be sure. Any opinions on it's political label? Quote Link to comment Share on other sites More sharing options...
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