When Gold Booms.....

Nouriel Roubini, the cofounder and chairman of Roubini Global Economics, said that a gold standard is unlikely to stabilize the financial system. On the contrary, holds Roubini, such a standard can only make things much worse.

Conclusions
A pure gold standard is not conducive to business cycles. Contrary to mainstream economists, we suggest that it is the attempts of the central banks to bring about price stability and full employment that set in motion the menace of boom-bust cycles. The mainstream view that during an economic slump it is OK for the central bank to pump money in order to revive the economy confuses money with funding. Printing more money cannot generate more goods and services; it can only redistribute the existing wealth from wealth generators to the holders of newly printed money. In the process this undermines the pool of real funding and weakens wealth generators' ability to grow the economy.

Meanwhile... Gold Booms!

Source: Boom, Bust & Gold