Research in Focus — To understand the gold standard’s dynamic impact on money, prices, and output, two economists developed a model that lets them contrast it with today’s fiat money.

This special report highlights ongoing work to benchmark the stance of monetary policy using a range of policy rules that are widely employed in studies of monetary economics.

WP 24-06 – How does an economy behave in a historical environment where gold is the international monetary standard? We find that key features of this monetary system are long-run price stability and the nonneutrality of money in the short run.