A good example of the benefits of sound money can be found looking at the fate of the Swiss economy, the last bastion of sound money, which had kept its currency pegged to gold until 1973. Before that time, involuntary unemployment in Switzerland practically didnβt exist, as Austrian economists would expect from a free market in money. The severing of the francβs link to gold would then result in the rise of unemployment, and its remaining endemic to the Swiss economy. In 1992, Switzerland joined the IMF, adopted Keynesian dogma, and sold over half of their gold holdings, and as a result began to experience the pleasures of Keynesian funny money, with unemployment rate rising to 5% within a few years, rarely ever dropping below 2%. (See Figure 13.13)
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