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Examining the value of money in america over the long term (1792–2009)

Abdullah, Adam (2013) Examining the value of money in america over the long term (1792–2009). International Journal of Economics and Finance, 5 (10). pp. 58-84. ISSN 1916-971X

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Abstract

This paper aims to examine the significant loss of value of money over the long term in America between 1792–2009. One U.S. dollar in 1792 is now worth only two cents by 2009. By critically examining the value and purchasing power of money in America, this paper compares empirical evidence and statistics through long term analysis of gold, silver and commodity price indices, as to which medium of exchange provides for the best store of value. This paper finds that monetary policy should not target stable prices, by managing the quantity or purchasing power of money, but instead adopt a monetary theory of value involving a stable currency, free of any monetary management or manipulation, permitting a stable purchasing power and thus stable prices.

Item Type: Article (Journal)
Additional Information: 7452/44664
Uncontrolled Keywords: gold price, silver price, commodity prices, value of money, purchasing power of money
Subjects: H Social Sciences > HB Economic Theory
Kulliyyahs/Centres/Divisions/Institutes: Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Adam Abdullah
Date Deposited: 14 Sep 2015 10:07
Last Modified: 14 Sep 2015 10:07
URI: http://irep.iium.edu.my/id/eprint/44664

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