Passage for Precis - English, RBI_2017 How Gold has been the measure of wealth and token of curren

Passage for Precis - English, RBI_2017 How Gold has been the measure of wealth and token of currency since historic time such as battle of water loo and even when Pound sterling was dominant, gold held up it's own value. Although Paper money provides convenience to govt, many times when govt starts printing money to bridge the fiscal gap it creates problem - as it decreases the value of money, raises the inflation, reduce purchasing power of paper money. Example: when govt squeezed the liquidity from market by keeping the interest rate higher, the value of USD had soared high and it became one of the strongest currencies in the world. After 9/11, when people started losing faith in economy due to various reasons, USD weakened as govt had to reduce the interest rate up to zero. Government should maintain fiscal deficit up to 3% of country GDP for a healthy economy. If it crosses 5%, the economy destabilizes as inflation rises, interest rate rises among other things. The world should start following India in how people in India saves their money. People in India save much of their money in Gold and Silver rather than in hard currency for various purposes such as for rainy day, for dowry and for wealth accumulation. China has started following India in this aspect vehemently and so the funds managers of businesses over the world has recognized this and are following the suite. (based on memory, could be some deviation)