Friday, November 26, 2010

World Bank President advocates global gold standard adoption

On Nov. 7th, President of the World Bank, Robert Zoellick, suggested that leading economies should return to the gold standard. (Financial Times) This is not a great idea. Not only would the deflationary trend be aggravated, but the world monetary system would be derailed from an extension of the Special Drawing Rights system of the IMF as a solution,which Keynes suggested in 1944 (see Chapter V of  forthcoming book, Brave New World Economy). -- R.A.I.

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