Gold and economic freedom greenspan pdf
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- Alan Greenspan
- The dangerous rise of economic interventionism
- Greenspan on the Gold Standard: 1966 vs. 2005
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense — perhaps more clearly and subtly than many consistent defenders of laissez-faire — that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other. In order to understand the source of their antagonism, it is necessary first to understand the specific role of gold in a free society.
Zimmermann, Thomas A. Published in: in: Simona Beretta and Roberto Zoboli eds. Relazi, : pp. This paper reviews the economic interventions by governments and central banks in response to the financial and economic crisis.
Alan Greenspan is correct to be concerned that soaring stock prices will lead to higher spending and prices elsewhere in the economy. He is also correct that the extraordinary increase in the stock prices is being fueled by a wave of optimism. What he does not say is that neither the wave of optimism nor the rising stock prices would be possible without the massive amounts of new money created by the Federal Reserve and the banking system. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late…. In attempting to stimulate the economy with easy money, the Fed cannot control where the money will flow; it can only initiate and encourage the flow.
Earlier I wrote a post on the gutting of Rep. Gold and economic freedom are inseparable,. What medium of exchange will be acceptable to all participants in an economy is not determined arbitrarily. Where store-of-value considerations are important, as they are in richer, more civilized societies, the medium of exchange must be a durable commodity, usually a metal. A metal is generally chosen because it is homogeneous and divisible: every unit is the same as every other and it can be blended or formed in any quantity. Precious jewels, for example, are neither homogeneous nor divisible. More important, the commodity chosen as a medium must be a luxury.
The dangerous rise of economic interventionism
The gold standard, a monetary system affixing a standard economic unit in an account to the weight of gold, comes in different forms. The gold specie standard, a system using actual gold coins in circulation or gold mixed in conjuction with a lesser valuable metal, oft refers to the ancient system of purchasing power. The gold exchange standard involves the circulation of silver or lesser valued metals that obtain a fixed exchange rate with other particpating countries using the gold standard. The latter method evolves into a de facto gold standard, where the value of silver coins has an affixed external value that can be exchanged for the independent value of gold. The gold bullion standard, however, does not implement the circulation of gold coinage, but grants authorities the right to sell gold bullion on demand at an agreed, fixed price in exchange for a circulating currency. The gold specie standard was accepted as a universal currency, unlike other methods of the gold standard, which were implemented into effect by authorities.
Discussion in ' Economics ' started by TraderD , Jan 20, Log in or Sign up. Elite Trader. By Alan Greenspan; An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense - perhaps more clearly and subtly than many consistent defenders of laissez-faire - that gold and economic freedom are inseparable, that the gold standard is an instrument of laissez-faire and that each implies and requires the other.
Greenspan on the Gold Standard: 1966 vs. 2005
He works as a private adviser and provides consulting for firms through his company, Greenspan Associates LLC. First appointed Federal Reserve chairman by President Ronald Reagan in August , he was reappointed at successive four-year intervals until retiring on January 31, , after the second-longest tenure in the position behind William McChesney Martin. Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his profile to a point that several observers likened him to a "rock star". The easy-money policies of the Fed during Greenspan's tenure, including the Greenspan put , have been suggested to be a leading cause of the dot-com bubble , and the subprime mortgage crisis occurring within a year of his leaving the Fed , which, said The Wall Street Journal , "tarnished his reputation.