Greenspan’s History of the Gold Standard
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Just caught Alan Greenspan interviewed on The Daily Show. To Jon Stewart’s credit, he asked the former Chief Inflationist some rather intelligent questions, such as why is it that our supposedly free market capitalist economy has a central bank?
In Greenspan’s reply was this interesting interpretation of monetary history that should strike anyone versed in Austrian theory as at least disingenous, if not downright deceitful: In the 1930s, said Greenspan, the whole world just up and decided that gold was “strangling the economy.” Seriously.
“The whole world”???? Or just the J.P. Morgans and Chase Manhattans?
UPDATE: Division of Labour has bit more of a thoroughgoing analysis of the interview. (Though I think they’re entirely too easy on Greenspan.)
DOUBLE UPDATE: Brad Spangler takes note of the Libertarian Left-ish class analysis implicit in Stewart’s observations of the Federal Reserve’s relationship to our not-so-free market.
February 21st, 2008 at 9:20 pm
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