ABSTRACT

One of the most important problems in all human relationships is the establishment of reliable measures. If a country has become adjusted to any price level that is the basis at which stabilization should occur. If the average price level of basic commodities is to fall as rapidly as efficiency increases, all fixed investments based on previous purchases of commodities must depreciate in value. All the currency would be exchangeable for gold but the amount of gold that a dollar would exchange for would vary with the price level. That is the price of gold would be allowed to vary with its value just as the price of wheat varies with its value. Form of a commodity dollar could be established by having a monetary authority given permission to change the price of gold and directed to make such changes when commodity prices differed by a certain amount from the desired price level.