LONDON — Ahead of the inevitable debates over currencies at the G-20 meeting in South Korea this week, the World Bank’s president has put in his two cents over how best to reform the global currency markets: the world’s leading economies should at least consider readopting a gold standard.
In a commentary piece in Sunday’s Financial Times, Robert Zoellick laid out five effective reforms, and added that a new system, “should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today. ”
