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Why Good Money Has a Solid Anchor

In: A Guide to Good Money

Author

Listed:
  • Brendan Brown

    (Hudson Institute)

  • Robert Pringle

    (Central Banking Publications)

Abstract

Is there a wonder mechanism which can foster the qualities of good money? The short answer is yes—a solid anchor. This is a device which protects money from storms of monetary inflation, possibly violent. A solid anchor achieves this by securely constraining the supply of money in relation to the demand for it. In this chapter, the authors analyse the concept of a monetary anchor in general. A good anchor can be applied either in a fiat money regime or, alternatively, in a commodity/real asset based regime.

Suggested Citation

  • Brendan Brown & Robert Pringle, 2022. "Why Good Money Has a Solid Anchor," Springer Books, in: A Guide to Good Money, chapter 0, pages 67-80, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-06041-0_5
    DOI: 10.1007/978-3-031-06041-0_5
    as

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