how a variable gold std might work

how a variable gold std might work

All unused gold and silver is held internally by residents of a particular country, none by banks or businesses or government. The people can buy or sell gold and silver at market price to each other or to business for consumption within 90 days.

The value is initially set for a currency, with respect to gold and silver, by the marketplace, with x currency units per ounce of gold, and y currency units per ounce of silver.

Changes are considered after the end of the current quarter:

1. Before the government can ask to increase or decrease interest rates, there must be an increase or decrease in new jobs created during the previous quarter.

2. If so, then the government can increase or decrease interest rates quarterly to achieve a change in the value of the currency up to 1%, which would be to 0.99x to 1.01x currency units per ounce of gold, and to 0.99y to 1.01y currency units per ounce of silver.

3. The government must then wait until the end of the current quarter before repeating this change consideration process.