Hayek on the need to win the ideas war to bring sound money back
In the preface to one of his books, Hayek wrote that “Indeed I must admit that–although I am a convinced believer in the international gold standard–I regard the prospects of its restoration in the near future not without some concern. Nothing would be more fatal from a long run point of view than if the world attempted a formal return to the gold standard before people had become willing to work it, and if, as would be quite probable under the circumstances, this were soon followed by a renewed collapse. . . .it seems to me as if we had reached a stage where their views [monetary nationalists] have got such a hold on those in responsible positions, where so much of the traditional rules of policy have either been forgotten or been displaced by others, which are, unconsciously perhaps, part of the new philosophy, that much must be done in the realm of ideas before we can hope to achieve the basis of a stable international system.”
That is why we began the Atlas sound money project. Sad in a way that those who should prove that their views are better are the monetary nationalists (anyone in mind?) and the paper money advocates. Nevertheless, we need to mobilize most of our talents to make possible a system where money follows the rules of markets and voluntary contracts rather than the rule of bureaucratic and political decisions.
