we should jettison our fiat money system in favor of a gold or multicommodity-metal system (such as gold, platinum, silver, and copper). While we're at it, we should jettison fractional-reserve banking in favor of full-reserve banking.
"The reason why inflation is bad news is not because of increases in prices as such, but because of the damage inflation inflicts to the wealth-formation process."
This is old-fashioned redistribution, to sustain the unsustainable.
Modern monetary theory takes up the thread of the traditional quantity theory as far as it starts from the cognition that changes in the purchasing power of money must be dealt with according to the principles applied to all other market phenomena and that there exists a connection between the changes in the demand for and supply of money on the one hand and those of purchasing power on the other.
Recorded at the Mises Circle in Greenville, South Carolina, 3 October 2009.
"Inflation worked as a tax on those further removed from government spending."
The excellence of the gold standard is to be seen in the fact that it makes the monetary unit's purchasing power independent of the arbitrary and vacillating policies of governments, political parties, and pressure groups.
Recorded at the Mises Circle in Seattle, September 12th, 2009. Sponsored by James M. Wolfe.
