Students who agree with the idea of replacing the paper money with gold.
Most of the governments print money as they want for example US, before 1971 US dollar was backed by gold, money actually meant something up until 1971 when Richard Nixon ended any remaining link between the dollar and gold. Since 1971 the US keep borrowing money and printing as much as they want. US has debt over 15 trillion dollars this system of creating debt to print money has been working well for US but at some point this will stop. Gold has true value, using gold instead of money will give value to value, unlike paper money where the value of money is based on the policy of central bank. With current global crisis it will be good to use gold instead of paper money, using gold will prevent from recession and inflation because the value will not come from government and central bank policies. In the economy the recession happens when the country has high unemployment and unemployment begins when the country has low production. Production reduces when the demand for those products reduce, there are many reasons why demand reduces, but simple reason is when people can not afford. Most of the time people can not afford when the price of goods are high and salaries are low and another reason is when they have a lot of debt which they have to pay at high interest. Price of good increase due to speculation of commonalities at futures market. Replacing the paper money to gold can over come with problem by giving true value to the economy and to the goods.
Students who do not agree with the idea of replacing the paper money with gold.
When the country uses paper money the money has to come back to the country at some point, if the country uses gold the money will keep going out and it might never come back to the country because gold has value anywhere at any shape as long as it is gold. Gold has high demand and it can be stored for very long time, there for can be sold any time. If the country uses gold, there will be shortage of money in the economy and this will result in recession, the money supply must be balanced. If the country uses gold instead of money that country will keep losing gold and these will reduce the economic condition of the country. If the country wants to use gold then they must wait until the global system adjusted to gold, until the global system is adjusted the country should save their gold for future.
Instead of replacing the currency to gold, the country should make some percentage of their currency backed by gold.