Former Obama economic advisor Austan Goolsbee, also a professor at Chicago, seems downright annoyed by the gold questions, saying, “eesh. Has it come to this?”
One wonders how MIT’s Bengt Holmstöm makes this judgment: “All insights from the past and current crises go against a gold standard.”
To the contrary, history shows that with a gold standard there are fewer crises; and when there are crises they are short-lived, as in the case of the panics of 1819, 1873, and 1920. Since the last remnants of the gold standard were cast aside by Nixon in 1971, world economies have been a series of booms, busts, inflations, economic instability, with no real economic growth.