Do you think an international monetary system with currencies valued on the basis of gold would work today?

Please read the instructions carefully (“Directions for this
Essay”, “Opinions”, and “Guidelines” sections). Do not bid on this order unless
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Directions for this Essay:
-Read the opinions given below by another person in answer to two questions
regarding an International Monetary System based on gold and implementing a
global version of the European Monetary System.
-After reading the opinions given by that person, respond to the following
questions in a one-page essay:
1) Do you agree with the opinion
given to question # 1? Why or why not?
2) Do you agree with the
opinion given to question # 2? Why or why not?

Opinions:

Question # 1: Do you think an international monetary
system with currencies valued on the basis of gold would work today? Why
or why not?

Opinion: Suppose the international monetary system is the
standard economic unit of account based on gold. In these countries, the
currency would be linked to gold, and the value of a country’s paper money
would also be linked to gold. Therefore, the gold standard would lead to more prevalent
periods of inflation and deflation. This is because the value of a currency
will depend on gold discoveries. For example, if there is a significant
discovery of gold, it will lead to more currency, which will lead to inflation.
However, if gold discoveries reduce or fall drastically, then growth in the
money supply will slow down, leading to deflation. In addition, the banking
system will become more prone to crisis and instability. While new unregulated
entities will crop up, putting an immense risk on the financial and banking
structure.

Question # 2: Do you think implementing a global version
of the old European monetary system would work today? Why or why not?

Opinion: Implementing a system similar to the European
monetary system on a global scale would be a difficult task. Economies with
highly disparate economic conditions would find it challenging to address
domestic economic problems that could be dealt with efficiently at the national
level. The world’s industrialized economies could develop a system similar to
the European monetary system, but without including the least developed
economies. Thus, without the world’s poorest countries in line economically
with the world’s most advanced economies would be practically impossible.
Furthermore, the vast amounts of subsidies to the poor economies could severely
drain the resources of the world’s most industrialized countries.

Guidelines:
-Do not use Wikipedia as a reference.
-Please put together complete and well-thought-out responses. Original input is
greatly appreciated it, so please integrate your thoughts and experiences in
the essay.
-Also, answer the questions completely. Quality counts, so be brief thorough
and to the point.

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