<Li> Devaluing a currency under a gold standard would generally produce sharper changes than the smooth declines seen in fiat currencies, depending on the method of devaluation . </Li> <Li> Most economists favor a low, positive rate of inflation of around 2% . This reflects fear of deflationary shocks and the belief that active monetary policy can dampen fluctuations in output and unemployment . Inflation gives them room to tighten policy without inducing deflation . </Li> <Li> A gold standard provides practical constraints against the measures that central banks might otherwise use to respond to economic crises . Creation of new money reduces interest rates and thereby increases demand for new lower cost debt, raising the demand for money . </Li> <P> According to research produced by the Bank of Canada, the emerging Bitcoin economy has many similarities with the economy based on gold standard, in particular: </P>

When did the us get off the gold standard