Should the US return to the gold standard? (Bloomberg debate)

Typical misinformed Keynesian guy straight out of the Ivy League vs. a guy that actually knows what he's talking about. How can people that are paying attention not see how clear the right answer is here?

6 Comments
 
Best Response

the fed has 2 congressional mandates:

1) keep inflation under control 2) maximize employment

These two mandates are often at odds with each other, so:

-If the slightest possibility of inflation gets your panties in a bunch, just advocate for the elimination of the second mandate. The fed would then implement policies aligned with your interests and monetary policy would always be restrictive

-If you want policies that maximize employment and arent worried about inflation, advocate for the elimination of the first and monetary policy would always be expansionary

-If you want policies that promote both low inflation and max employment, well hope that the Bernank and the governers find the right balance that promotes employment when inflation is low, and minimizes inflation when employment is high

-If you want no control of either, well then advocate for the gold standard like this idiot

 

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