What are the Demerits of Monometallism?
Monometallism lacks elasticity. Money supply depends upon the metallic reserves. Thus, money supply cannot be changed in accordance with the requirements of the economy.
Monometallism lacks elasticity. Money supply depends upon the metallic reserves. Thus, money supply cannot be changed in accordance with the requirements of the economy.
Monometallism avoids the operation of Gresham's law. According to this law, when both good as well as bad money exist in the economy, bad money tends to drive out of circulation good money.