The Research Of Property Of Gold As Money And The Remonetization Of Gold

Since the financial crises broken in 2008, the research about property of gold as money become hot areas along with the circumstance that the gold price is climbing and the US dollar on a general downtrend. Gold once played important role in international monetary system because its commodity and money property. But for many reasons, gold retreated from the stage of international monetary system artificially. The retreat is not the real retreat. Through the deep understanding of gold; international money and the characteristics of different international monetary system stages, we found that the collapse of the gold standard is the deficiencies of system, not because gold itself, the demonetization of gold is not the effective way to solve the intrinsic problem of international money system. Gold demonstrate its incomparable advantages under the disorders of Jamaica system and crisis of US dollar. Gold is an effective toll against inflation and dollar depreciation, ideal instrument of investment value store. Based on this, through empirical test and GARCH model to prove the theory is correct that the re-monetization of gold is one of effective ways to overcome the defect of current international money system, and re-monetization of gold is one of important direction of international money system reform in the future.