[vkou]

Yes, because tying deflation and inflation to the rate of 'how quickly do we mine gold' is a brilliant way to run an economy.

Don't open enough gold mines? Here comes the deflationary spiral of death to strangle the economy. Too many gold mines? Inflation, inflation, inflation.

Can we do anything to dampen either one? Nope.

> 2. Use it as a geopolitical weapon.

Sure as hell beats getting involved in an actual shooting war.

[not2b]

This was exactly the history of the American economy in the 19th century. Rapid episodes of deflation would regularly bankrupt farmers, who couldn't sell their crops for enough to repay their loans.

[rglover]

> Sure as hell beats getting involved in an actual shooting war.

Until it backfires and creates the potential for a nuclear war.

[vkou]

Nobody's going to start a nuclear war over sanctions.