Gold Standard & Quantitative Easing
The U.S. dollar is classified as "fiat" money and is not fixed to the value of any particular currency or precious metal. This has not always been the case - indeed, for a time U.S. currency was redeemable for a fixed value of gold. Give two reasons for (20 points) and two reasons against backing a currency with gold. Then develop your position either for or against backing the US currency with gold and substantiate your assertions. Outside research is encouraged; please cite your sources.
Part Two
What is the Federal Reserve's maturity extension program (referred to by some as "operation twist") and what is its purpose? Do you think the Federal Reserve should continue quantitative easing to stimulate the economy? Why can't countries like Greece or Spain use quantitative easing as a means to stimulate their economies?