Fetters of gold and paper
AbstractWe describe in this essay why the gold standard and the euro are extreme forms of fixed exchange rates, and how these policies had their most potent effects in the worst peaceful economic periods in modern times. While we are lucky to have avoided another catastrophe like the Great Depression in 2008--9, mainly by virtue of policy-makers' aggressive use of monetary and fiscal stimuli, the world economy is still experiencing many difficulties. As in the Great Depression, this second round of problems stems from the prevalence of fixed exchange rates. Fixed exchange rates facilitate business and communication in good times but intensify problems when times are bad. Copyright 2010, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Review of Economic Policy.
Volume (Year): 26 (2010)
Issue (Month): 3 (Autumn)
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Other versions of this item:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
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