Excellent two-part essay on Gold Buggery.
Part 1 - Summary: Periods of economic stress tend to bring forth quack simplistic economic theories, like during the 1930s. We will see more of these if this slow period continues, more so if we have another recession before a recovery. Not just gold, but other fringe ideas such as Ayn Rand and her mutant version of Marx’s labor theory of value (with “going Galt” as their form of collective labor action).
Part 2 - Summary: The history of gold-based currencies, from Newton to the Great Depression, warns us that they are no panacea. If not carefully structured they can destroy an economy in extremis by preventing radical monetary easing. This is part two of two looking at gold-based monetary systems, the theory and the history.
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