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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (126818)	7/22/2005 11:01:54 AM
From: LindyBill	Respond to of 793729

In the 20th century, economists have demonstrated that the "gold standard" (which, by the way, is managed by central banks) leads inexorably to deflation and instability. We have learned-the very hard way-that stablity requires a way to expand the money supply at a rate that equals the increase in productivity. In our case, we get a bonus for the fact that everybody wants to hold our money overseas. We don't seem to be able to do this without allowing an inflation rate of about one to two percent.