In the past several decades, the United States has consistently run a current account deficit. The dollar has become weaker. We have had recessions, and we have had inflation. Some economists and politicians argue that we should return to the gold standard. The United States has actually operated under two gold standards. From 1879 to 1933, the dollar was defined as 32.22 grains of gold, yielding a price of $20.671835 an ounce. During that time period, general prices more than doubled during World War I, there was a major depression in 1920–1921, and the Great Depression occurred. The second gold standard prevailed from 1933 to 1971, when the price of gold was pegged at $35 an ounce. A dollar was defined as 13.714286 grains of gold. During that time period, prices tripled. Clearly, a gold standard guarantees neither stable prices nor economic stability.

Why does no country today operate on a gold standard?