Thursday 20 August 2015

10 Things Every Economist Should Know About The Gold Standard | Zero Hedge

10 Things Every Economist Should Know About The Gold Standard | Zero Hedge



At the risk of sounding like a broken record (well, OK–at the risk of continuing to sound like a broken record), I'd like to say a bit more about economists' tendency to get their monetary history wrong.  In particular, I'd like to take aim at common myths about the gold standard.
If there's one monetary history topic that tends to get handled especially sloppily by monetary economists, not to mention other sorts, this is it.  Sure, the gold standard was hardly perfect, and gold bugs themselves sometimes make silly claims about their favorite former monetary standard.   But these things don't excuse the errors many economists commit in their eagerness to find fault with that "barbarous relic."
The false claims I have in mind are mostly ones I and others–notably Larry White–have countered  before.  Still I thought it would be useful to address them again here, because they're still far from being dead horses, and also so that students wrapping-up the semester will have something convenient to send to their misinformed gold-bashing profs (though I urge them to wait until grades are in before sharing!).
For the sake of those who don't care to wade through the whole post, here is a "jump to" list of the points covered:

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