Many countries claim they have “gold-backed” currencies in an effort to try to provide security and investor confidence. However, the reality is that none of the world’s fiat currencies are even remotely gold-backed, and the Chinese yuan even less so.

In this short video, we explain what governments and central banks would need to do to try to achieve a respectable level of stability close to gold-backing:

• Increase gold reserves at the central bank.
• Reduce the increase of money supply so that it does not grow above real GDP.

00:07:39