by Ralph J. Benko
Q: In your Forbes.com column last October 23, My Friendly Debate With Allan Meltzer, the World’s Leading Monetarist, you observed “I’ve softened in my view towards the gold standard. It used to be that most of the writing that I did about the gold standard was negative. I’m beginning to wonder if one could ever really have the moral force in the political arena around an equation like the Taylor Rule, which is an admirable equation, that one could have over something that’s got basically over 4000 years of recorded history behind it, which is a reliance on gold. I’ve come to see the gold standard as maybe the only real hope we’d have of getting some kind of price stability, given the fact that it’s so easy to manipulate theories and to manipulate equations, but it’s not easy to manipulate the supply of gold.”
How would you describe your view towards the gold standard today?
A: In a word, committed. I’ve never been contemptuous towards the gold standard position. I’d say I’ve gone from respectfully suspicious to neutral, to surreptitiously supportive, to agreeable, to committed. In that order.
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