"In the two decades following the abandonment of the gold standard in 1933, the Consumer Price Index in the United States nearly doubled. And, in the four decades after that, prices quintupled. Monetary policy, unleashed from the constraint of domestic gold convertibility, had allowed a persistent over issuance of money. As recently as a decade ago, central bankers, having witnessed more than a half-century of chronic inflation, appeared to confirm that a fiat currency was inherently subject to excess."
What was it you said about drunken fools who talk about fiat currency, and who need to be safely guided home from bars?
Is Greenspan a drunken fool, in your estimation?
heh... Well, I can't say that I know about Greenspan's drinking habits. :-)
I can't say that there's anything about that paragraph to disagee with. There's been all manner of bad monetary policy at one time or another. Just like there's been bad fiscal policy too.
Tying the money supply to gold or anything else doesn't eliminate risks to the economy, it just changes the risks.