– July 1, 2007

Economic Education Bulletin

Vol. XLVII No. 7 | July, 2007

It may be a mistake for monetary authorities to fail to monitor the quantity of monetary expansion in the belief that something better, like inflation targeting, has come along. Policymakers should remember that the comparatively benign inflation experience of recent decades reflects a novel experiment in 2,500 years of monetary history: For the first time, there is no effective link between money and precious metals, and this condition is universal.

by Forrest Capie