Steve Horwitz to the defense of the Gold Standard
Last week, Matt Yglesias outlined seven reasons to think that the Gold Standard is not a viable option, but rather a terrible idea. In an article published by www.FreeBanking.org, Steve Horwitz refutes Yglesias point by point, addressing the following claims:
1) A gold standard wouldn’t stabilize inflation
2) A gold standard wouldn’t stabilize exchange rates
3) There’s no inflation problem to cure
4) There’s nothing stopping you from writing gold contracts
5) Gold recessions could last for years
6) The gold standard wouldn’t eliminate political money
7) Gold-backed money reduces the supply of gold
To read his post in its entirety, click here.
