Substituting precious metals with paper tickets does actually make society richer since such a substitution allows society to use the precious metals previously used as media of exchange for non-monetary purposes. However, I think, and here I differ from many other economists, that paper money should be on a gold standard. Gold standard does not mean that we should use precious metals as media of exchange other than in extremely rare cases. In nearly all cases under a gold standard only claims to money change hands and in our days we can substitute paper with electronic signals which is even cheaper than paper.
Gold standard does not mean that we should use precious metals as media of exchange, just that the paper money is on a gold standard.
Professor Hoppe is an ultra-metalist and ultra-metalists are actually AGAINST the gold standard since they wish to use precious metals as media of exchange.
Professor Hoppe is wrong in the sense that a sound paper currency actually makes society richer by substituting precious metals with cheap paper tickets.
However, professor Hoppe has a point if he tries to say that reckless inflation is no source of prosperity.
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