The True Gold Standard (Second Edition)
The true gold standard skews neither left nor right. It offers a benevolent fairness, derived from its integrity.
Perceptive humanitarian populists of the left, as well as those of the right, have recognized this.
George Bernard Shaw, the great literary critic, playwright, and essayist who won the 1925 Nobel Prize for literature, co-founder of the London School of Economics, an ardent and eloquent socialist, had this to say about the gold standard in his 1928 The Intelligent Women's Guide to Socialism and Capitalism, chapter 55, p. 263:
“You have to choose between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.”
History decisively demonstrates that neither gold nor human nature are subject to change. By relying on what Shaw termed "the natural stability of gold" -- rather than "the honesty and intelligence of the members of the government" -- whichever party happens to be in charge -- the economy demonstrably has a greater propensity to thrive and create a climate that creates jobs and opportunity. Gold skews neither left nor right. It is a fundamental instrument of any humanitarian economic policy.
The Federal Reserve System's James Narron and David Skeie, career officials with the Federal Reserve System, are two eminent historically erudite figures. Writing in the New York Federal Reserve Bank's online publication, Liberty Street Economics, they recently provided a continuation of their valuable historical "revue," Crisis Chronicles: The Collapse of the...
Jul 14, 2014
On July 6th, Nobel economics laureate and Princeton Professor launched, in the New York Times, one of his occasional polemics, entitled Conservative Delusions About Inflation, against proponents of the gold standard. Krugman Caricature under creative commons license from DonkeyHotey As usual, Prof. Krugman is, conveniently for the position he takes, beyond lopsided...
Jul 23, 2014
An article headline in Saturday’s Wall Street Journalread “Rate Talk Heats Up Within The Fed.” As Journalreporters Jon Hilsenrath and Michael Derby...
Oct 05, 2012
Key Monetary Writings
Barry Eichengreen (2011) writes that countries using gold as money “fix its price in domestic-currency terms (in the U.S. case,...
Why the Gold Standard?