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January 04, 2004
So why don't we return to gold?
In December 2002, at the Economic Club of New York, Fed chairman Alan Greenspan said:
The price level in 1929 was not much different, on net, from what it had been in 1800. But, in the two decades following the abandonment of the gold standard in 1933, the consumer price index in the United States nearly doubled. And, in the four decades after that, prices quintupled. Monetary policy, unleashed from the constraint of domestic gold convertibility, had allowed a persistent overissuance of money.
Quoted in Financial Reckoning Day, page 270.
Posted by George F. Smith at January 4, 2004 07:52 PM
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