Did you ever notice that the many folks who trash the gold standard never support their opinion? They simply dash it off, as though the gold standard cannot be defended.
In actual truth, the gold standard can be defended or attacked, just like any other policy position. Here are some defenses:
Alan Greenspan:
"under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth... The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation." Alan Greenspan.
Murray Rothbard:
http://www.mises.org/mysteryofbanking/mysteryofbanking.pdf
The Rothbard book is a good introduction. For a shorter (and not as good) intro, consult Wikipedia:
http://en.wikipedia.org/wiki/Gold_standard
Did you ever notice that the many folks who trash the gold standard never support their opinion? They simply dash it off, as though the gold standard cannot be defended.
In actual truth, the gold standard can be defended or attacked, just like any other policy position. Here are some defenses:
Alan Greenspan:
"under the gold standard, a free banking system stands as the protector of an economy's stability and balanced growth... The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation." Alan Greenspan.
Murray Rothbard:
http://www.mises.org/mysteryofbanking/mysteryofbanking.pdf
The Rothbard book is a good introduction. For a shorter (and not as good) intro, consult Wikipedia:
http://en.wikipedia.org/wiki/Gold_standard