-regime demand for gold. Derived multiple equilibria suggest that the monetary authority could possibly have a wide percentage range … of gold demand. Demanding a higher percentage of gold is more appropriate if the central bank prefers to accumulate … higher volatility of monthly returns on gold …

A new hypothesis is set forth regarding what it means for gold to be a store of wealth. This property is contingent on … the type of monetary standard. Gold is a store of wealth in a Gold Standard when the value of a perpetuity paying one unit … of gold-compensated currency (Fisher, 1912) is constant. In a fiat economy, gold fulfills its store of wealth property …

In this paper we analyze the effect of central bank gold holdings on government bonds and exchange rates. We test the … hypothesis that gold reserves build trust and thus reduce government bond yields and exchange rate volatility. The econometric … hypothesis". Consequently, we are also sceptical about proposals to use gold as collateral for newly issued government debt …