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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Abner Hosmer who wrote (7030)	2/1/1998 5:52:00 AM
From: Abner Hosmer	Read Replies (1) \| Respond to of 116760

Missed this earlier from Stephen Salants home page. Highly recommended. It is interesting to note that Salant's paper focuses almost exclusively on efficient resource utilization, and does not appear to address whatsoever the monetary uses of gold. Nontechnical Briefing for Policymakers and Journalists "A Note on Government Gold Policies" (with D. Henderson). latest draft: December, 1997. econ.lsa.umich.edu Some brief reviews of the Salant/Henderson paper: >>Why, he asks, should the private sector waste money digging expensive gold out of the ground when central banks could provide it more cheaply and hold interest-earning assets instead? ...The younger generation, including some in the Bundesbank, share Mr Henderson's view that "if you are trying to be a modern, forward-looking central bank, you would best leave gold out of it." Traditionalists counter that gold reserves are essential to establish the credibility of what will be an unfamiliar and untested institution. econ.lsa.umich.edu Although it is difficult to say for sure, a cruise of Salant's website has me wondering if there might have been an environmentalist motivation in writing the paper. Would be curious to hear anyone else's impressions. Tom