Why A BRICS Gold Standard Is A Fiction – OpEd - Eurasia Review
Why A BRICS Gold Standard Is A Fiction – OpEd - Eurasia Review
Source: Eurasia Review
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DW NOTE
The claim isn't that BRICS lacks the gold — it's that they lack the discipline. A gold standard requires central banks to defend convertibility when it hurts, not just when it's convenient. Russia, China, Brazil, India, and South Africa have never demonstrated they would let reserves drain to honor a peg during a balance-of-payments crisis. What they've demonstrated is repeated preference for devaluation over austerity. A gold standard without enforcement is just a marketing slogan with bullion in the basement.