Switzerland could lead the way back to the Latin Monetary Union
Switzerland should pioneer the resurrection of the Latin Monetary Union. It should open its mints to the free coinage of the gold franc and the silver thaler with 0 percent seigniorage. Unlike the euro which was created in imitation of the dollar with 100 percent seigniorage, the Swiss franc would be a redeemable currency. Switzerland could persuade its former partners in the Latin Monetary Union to follow suit and open their mints, too, to gold and silver. Having anchored the value of their currencies to gold, monetary stability in Euroland would be achieved for the first time since 1971. This would revitalize the economy, trade and investment in Europe like nothing else could.
It would be a mistake to establish a fixed gold price in terms of the euro. The two currencies, the gold franc and the paper euro could circulate side-by-side at a variable exchange rate determined by the market. Let the best currency win, and let the people be the judge! If they preferred the irredeemable paper euro, then they should be able to keep it, letting the gold franc fade away. But if they wanted to have a currency with debt-liquidating power, they would keep the gold franc, and let the paper euro fade away.