Alan Reynolds Argues For the Gold Standard, 1982

IMG Auteur
Published : September 11th, 2017
361 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...

Here are Allan Meltzer and Alan Reynolds, arguing for Monetarism and the gold standard, in 1982. I think it is an interesting exchange. You could say that things haven’t changed much since then. But, I don’t think that is true. Nobody really takes the Monetarism of that era seriously anymore. The Monetarists themselves had to give up all the fantasies of those days, and are now on what I call third-generation Monetarism, which is Nominal GDP Targeting.

There is a lot of talk about “rules-based” monetary policy these days. Central banks’ seat-of-the-pants ad-hoc improvisation makes everyone nervous. But, there’s a reason why things are done this way: all of the “rules” that academics think are going to work, tend to blow up in actual practice. This was also true of Monetarism, when Paul Volcker tried it in the early 1980s. He also had to go back to a seat-of-the-pants ad-hoc approach. Remember when Ben Bernanke was an “inflation targeting” fan? That went out the window too, in any sort of rigid implementation. Every major central bank these days has some kind of inflation target, so that is effectively just another name for today’s ad-hoc status quo. Meltzer here argues for a fixed rate of base money (or bank reserves) growth. This is nearly the same model as Bitcoin today, producing dizzying volatility. Stable growth of supply does not equal stable value. We’ve also seen this with many currencies, where base money is stable or growing at a stable rate, but the value of the currency falls out of bed. This was true in Thailand in 1997 or Russia more recently. It was true of Britain in 1931, and the U.S. in 1933 and 1971.

October 23, 2015: Russia’s Central Bank Might Be Getting A Clue After All
October 16, 2014: Russia’s Currency Crisis: This Is So 2008!
November 24, 2008: Russia’s Currency Crisis
January 19, 2014: The Federal Reserve in the 1930s
May 22, 2016: The Devaluation of the British Pound, September 21, 1931
Gold: the Monetary Polaris (contains many examples, including Thailand 1997)
March 6, 2014: Bitcoin Proves Friedman’s Big Plan Was a Joke

Read “Towards A Stable Monetary Policy” 

Data and Statistics for these countries : Georgia | Russia | Thailand | All
Gold and Silver Prices for these countries : Georgia | Russia | Thailand | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Nathan Lewis was formerly the chief international economist of a firm that provided investment research for institutions. He now works for an asset management company based in New York. Lewis has written for the Financial Times, Asian Wall Street Journal, Japan Times, Pravda, and other publications. He has appeared on financial television in the United States, Japan, and the Middle East.
Comment this article
>Follow all commentairies
You must be logged in to comment an article8000 characters max.
Log in or Sign up
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Top Ten Reasons I Buy Gold Silver [#7] - These Assets Come With a ...
21 Sepvictoriashores1
HI Jeff I have read your articles with a lot of interest in your feelings with the future of Gold and Silver. I'm 75 years of age and have ...
What Is the Correct Amount of Money?
20 Sepgfs543
If money is the heart of the economy, then the economies of the world are running with diseased hearts. Keynesians and other monetary intervention...
Pushback
20 SepGypsy
James, you're getting more difficult to read. As a Deplorable, I realize my under-education leaves me at a disadvantage when faced against the Mer...
Pushback
18 Sepdennyc3
If a university professor has been on the job for more than five years without venturing out into the world there's usually nothing to learn here. ...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
18 SepDRGEORGE
The world & the US $ have been on the brink for 10 years (or more). In 2008 it nearly happened but giving the 1% a stack of money saved the day. It...
'No evidence' of gold market manipulation, CPM Group's Christian in...
15 Sepneville
Despite being a so-called GOLD website ,I have read more anti GOLD articles on kitco than on any other site. Yes chris you are absolutely corre...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
15 SepSilverthumb2
I used to enjoy listening to Rickards. He sold out when he signed on with Agora Financial. Now he's just another ranting alarmist trying to get ri...
What's Killing the Jobs Market?
13 SepJ.0
It is hard to know where to begin to respond to your comment Recusant. You do not seem to understand how markets work. So, I'll throw out some po...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS