what would happen if we returned to the gold standard 
some economists argue that if we returned to the gold standard prices would actually destabilize leading to episodes of severe deflation and inflation moreover in the event of a financial crisis the government would have little flexibility to either avert or limit the potential damage the bottom linenixon shock refers to the aftermath of president richard nixon s august 1971 announcement of major economic policy changes that his administration intended to implement to improve the country s balance of payments prevent inflation and lower unemployment economists still argue about the merits of the actions taken as well as their ill effects 