Gerald P. O'Driscoll, Jr., previously of the Federal Reserve Bank of St. Louis and now of the Cato Institute, has an excellent article in today's Wall Street Journal. O'Driscoll writes:
"Mr. Obama needs to stop the next asset bubble from being inflated by imposing a commodity standard on the Fed. A commodity standard (such as a gold standard) imposes discipline on a central bank because it forces it to acquire commodity reserves in order to increase the money supply. Today the government can inflate asset bubbles without paying a cost for it because the currency isn't linked to the price of a commodity."
The Federal Reserve Bank has become a barbaric relic. It is time for Americans to think about adopting a civilized alternative to the Fed's barbarism: a gold standard.
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