Monday, November 29, 2010

Boom, Bust, and Gold

In his interview with the CNBC on November 9, 2010, a highly regarded Wall Street economist, Nouriel Roubini, the cofounder and chairman of Roubini Global Economics, said that a gold standard is unlikely to stabilize the financial system. On the contrary, holds Roubini, such a standard can only make things much worse.

...

On a gold standard, argues Roubini, the central bank will not be able to successfully counterbalance these tendencies. An economy on a gold standard would continue to reinforce the existing negative trends in the business cycle, he maintains."

Frank Shostak refutes all this and more here, at Mises.org.


Eric Sharp
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Regular Columnist, THL
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