Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Albert Barr

How is any inflation good? How about simple price stability like you would get on a gold standard?


3 posted on 02/10/2007 10:46:26 AM PST by frithguild (The Freepers moved as a group, like a school of sharks sweeping toward an unaware and unarmed victim)
[ Post Reply | Private Reply | To 2 | View Replies ]


To: frithguild

Would a gold standard really do that? How could going to a gold standard fix all costs? There would still be ups and downs in the cost of energy, changes in productivity and other fluctuations in the cost of producing goods. Companies would still have to compete for the best labor by offering higher salaries to lure new employees. Prices would still rise. I don't see how it is possible to have 0 inflation over time.

All the gold standard would do is tie the dollar to the price of gold, which has its own ups and downs according to what the market it doing. If the dollar went gold, I imagine the price of gold would go up, and so would the dollar. Then everybody would yell about the "trade deficit!"


5 posted on 02/10/2007 11:31:08 AM PST by Albert Barr
[ Post Reply | Private Reply | To 3 | View Replies ]

To: frithguild
How is any inflation good? How about simple price stability like you would get on a gold standard?

Germany was on the gold standard during their hyperinflation of the 1920's.

6 posted on 02/10/2007 11:33:08 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 3 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson