Posted 08/31/2012 6:29 pm
One thing to keep in mind is 1947 was a long time ago. After 65 years, at a very normal inflation rate of 3%, a $5 coin should be worth $35. Inflation occurs regardless of whether a country is on a Gold or a Fiat monetary base. A low supply of any good or service will cause its price to inflate even if the amount of currency in float remains constant. The extreme economic weakness and catastrophic depressions that result from adherence to a currency that has zero relation to the real economy often exacerbates rather than prevents inflation.
