A balanced essay on the Gold Standard

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This well written piece suggest an intriguing alternative to the "gold standard"... allow currencies to "compete." The article is rather long (and a good read), but I will provide the summation:

"Clearly, important goals are within reach. Inflation is low, and price stability is beginning to be recognized as the predominant long-term monetary policy objective of the Federal Reserve. Flexible exchange rates, coupled with more-open capital markets, are enabling international currencies to compete with one another. Central banks cannot be complacent, however, because new challenges will surely arise. Just as fiat money replaced specie-backed paper currencies, electronically initiated debits and credits are likely to become the dominant payment modes in the future. The concept that money is like any other good and that competition among issuers can best guarantee its value should not be forgotten.

With the fall of communism, the lesson that market economies can best provide a country's goods and services is being affirmed around the world. That same wisdom may also be applied to the provision of currency. A nation's economy does not fare as well without competition in the marketplace. Similarly, the value of a nation's currency may not be optimal without competition. It is probably only with such competition that we may finally live up to Lincoln's challenge of fulfilling "the duty [government] owes the people, of furnishing them a sound and uniform currency." Fostering such competition may prove the surest way to guarantee that central banks meet their responsibility to generate maximum sustainable growth through price stability."

-- Ken Decker (
kcdecker@worldnet.att.net), April 24, 2000


Ken, maybe you could get creeper or Y2Kpro to give you html lessons? Sheesh.

-- (brother@xx.xx), April 24, 2000.

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