|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
jaykimf
Joined: 24 Apr 2004
|
 Posted: Wed Nov 10, 2010 6:10 am Post subject: |
 |
|
| bucheon bum wrote: |
Roubini: Why a Gold Standard Won't Work
| Quote: |
| "A fixed exchange regime, even if it is not a gold standard... That world just doesn't work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical," Roubini told NetNet. "Suppose you have a fixed exchange rate regime...It just exacerbates the business cycle." |
|
Good read, thanks.
| Quote: |
Historically speaking, Roubini says, during the days of the gold standard economies were constantly imperiled by spasmodic cycles: "When you had a traditional gold standard, boom and bust with severe swings in economic activity were the norm-really big ones. It was only once we moved to fiat money that central banks were able to smooth the business cycle, and make it less volatile, as we did during the financial economic crisis."
Of course, this directly contradicts Austrian business cycle theory, which argues that boom-bust cycles are caused by central banks departing from the gold standard.
In short, Roubini views challenge the Austrian economists where they live: at the intersection of monetary policy and the business cycle.
We eagerly await the response. Over to you Ron Paul and the Mises Institute! |
|
|
| Back to top |
|
 |
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
