Some Determinants of Using Gold as a Collateral for Securing EU States’ Sovereign Bonds

Authors

  • Tomasz Machelski Dr, Wyższa Szkoła Ekologii i Zarządzania w Warszawie, Poland

DOI:

https://doi.org/10.26485/SPE/2019/110/12

Keywords:

money, gold, financial system, bonds, financial crisis

Abstract

The paper looks at the concept that using gold as collateral for state bonds would bring great benefits to the EU countries. The paper explains that unlike monetary interventions involving complex chains of causality and many potential unintended consequences, using gold as collateral can be simple and transparent. Gold was used as collateral in the past, and to a great extent, at least from a legal point of view, this seems to be gold’s purpose. The author argues that using gold as security for new sovereign debt issuance would provide the EU states with critical breathing space to create more permanent solutions.

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Published

2019-06-15

How to Cite

Machelski, T. (2019). Some Determinants of Using Gold as a Collateral for Securing EU States’ Sovereign Bonds. Studia Prawno-Ekonomiczne, 110, 223–237. https://doi.org/10.26485/SPE/2019/110/12

Issue

Section

ARTICLES - THE ECONOMICS