Date of Original Version




Abstract or Description

The gold standard is an idea whose time is past — long past. The classical gold standard is not a superior method of solving our current problems of inflation and unemployment, whatever its merits a century ago. Advocates of a return to the gold standard offer their nostrum as a means of stabilizing prices but offer few details about how this desirable goal would be reached. All that we are usually told is that the gold standard is a "supply-side11 solution, a radical change that will reduce interest rates, stabilize prices and eliminate the summers excess supply of zucchini. None of these claims is true.



Published In

Report to the Congress of the Commission on the Role of Gold in the Domestic and International Monetary Systems, 2.