Reviving the gold standard, a move to regulate global money supply, is a bad idea in that it will make business cycles more volatile and take away central banks' abilities to fight inflation, says New York University economist Nouriel Roubini.
It also won't help monetary authorities fight unemployment.
"A fixed exchange regime, even if it is not a gold standard … that world just doesn't work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical," Roubini tells CNBC's NetNet.
"Suppose you have a fixed exchange rate regime ... it just exacerbates the business cycle."
The gold standard, a global fixed exchange rate that has garnered some advocates these days, would take away a country's ability to heat or cool its respective economy in an effort to create jobs or tame inflation.
Central banks would also be unable to stockpile money to act as a lender of last resort in the event of a run on banks.
Gold prices have skyrocketed over the past few years as more and more countries have printed money to fight deficits, a move that has flooded global money supply with liquidity that has sparked longer-term inflation fears.
World Bank President Robert Zoellick has said he does not favor a return to the gold standard.
"I don't believe you can return to a fixed exchange rate system and that is the gold standard," says Zoellick, according to Reuters.
Gold prices have soared recently to around $1,400 per ounce.
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