Monday, 20 October 2014

Gold Standard

Paul Krugman v. David Stockman: The Great Debate Over Gold Continues

Posted by Gonzalo Schwarz
April 22, 2013

by Ralph Benko Amid an ongoing decline in the price of gold, a major brawl recently broke out in the elite media over … the gold standard. What is this free-for-all all about?  And why does it matter?  It matters because… the gold standard finally has demonstrated that, after a long eclipse, it is being […]

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Sound Money vs. Stable Money

Posted by Gonzalo Schwarz
December 28, 2012

by Kenneth Gould Historically, there have been two contrasting monetary doctrines. The first doctrine favors what it calls “sound money,” defined as money that has a purchasing power determined by markets, independent of governments and political parties. A true gold standard is one example of money that has an intrinsic value determined by markets rather than governments. Note that, under a sound money doctrine’s principles, a gold standard where the government […]

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Is a Gold Standard Necessarily Vulnerable to Speculative Attacks?

Posted by Gonzalo Schwarz
December 18, 2012

   by Lawrence H. White My frequent co-author George Selgin (2012) finds it “more doubtful [today] than ever before that any government-sponsored and administered gold standard will be sufficiently credible to either be spared from or to withstand redemption runs.” He quotes James D. Hamilton (2005) to similar effect:  given that central banks the Treasuries […]

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Myth 8: The Gold Standard Helped Spread the Great Depression to the Rest of the World

Posted by Gonzalo Schwarz
December 14, 2012

by Lawrence H. White The second part of the “Golden Fetters” indictment, to quote a recent statement of it (Bordo 2010, p. 40), is that “The Great Depression spread across the world via the fixed exchange rate gold standard.”  In Eichengreen’s (1992, p. xi) earlier words, the international gold standard “transmitted the destabilizing impulse from […]

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The Case For 100% Reserve Banking

Posted by Devin Roundtree
December 14, 2012

by Devin Roundtree Even among the most vocal advocates of returning to a gold standard, a banking system that requires banks to reserve 100% of all deposits redeemable on demand is considered impractical and a hindrance to economic growth. However, not only is 100% reserve banking practical, it is lawful and will not create credit […]

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