The True Gold Standard (Second Edition)
As Master of the Mint, Sir Isaac Newton played a critical role in the establishment of the classical gold standard that would endure for almost 200 years. Newton was a seminal scientist, but he is not the only towering savant to participate in the creation of sound money.
Nicolaus Copernicus first established that the Earth goes around the Sun, overthrowing the ancient and then prevailing Ptolemaic view that the Sun goes around the Earth. It was one of the great breakthroughs in science. Copernicus, among other things a physician, was a polymath. He made a significant impact in monetary theory with a treatise on the reform of Prussian coinage.
It is at least somewhat ironic that those who seek to discredit the gold standard often take rhetorical refuge in the words of Creationist William Jennings Bryan and others of an unscientific turn of mind.
The cosmology of Copernicus and Newton’s Laws of physics are works of the most rigorous minds in history. The insights of these thinkers on monetary theory are equally sound—as demonstrated in the laboratory of history.
As Herman Hupfeld wrote in 1931 — and as made famous by Sam in Casablanca — the fundamental things don’t change as time goes by.
As stated by Leszek Zygner of Nicolaus Copernicus University:
Copernicus wrote three versions of his treatise on the reform of Prussian coinage in the years 1517-26
This document was produced with Bishop Fabianus Lusianus and members of the cathedral chapter of Warmia in mind and was to support their arguments in debates on monetary reform held during assemblies of the Estates of Royal Prussia (Stany Prus Królewskich). The treatise consisted of two parts. In the first Copernicus discusses general issues related to the theory of money and formulates inter alia a law of bad money driving out good. In the second he focused on the current monetary situation in Royal Prussia and in particular on the decline in the value of Prussian coinage, enumerating its types and explaining the reasons for the decrease in value of individual coins. …
An analysis of Copernicus general views on monetary issues show that he was a follower of the metallist theory of money; he saw the source of the value of a coin in its metal content. For him a coin was a marked (stamped) piece of gold or silver which is used as payment for commodities being bought or sold according to the legal tender laws passed by the issuer, namely the state or the ruler. According to Copernicus all kinds of money have their value (valor) and their estimated value (estimatio); while the value of a given coin depends on the amount and quality of the metal bullion of which it is made, its estimatio is its nominal value set by the overall authority in the country.
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...
Apr 17, 2012
Key Monetary Writings
John D. Mueller, Lehrman Institute Fellow in Economics at the Ethics and Public Policy Center, presented the following lecture at the Family Research...
Why the Gold Standard?