Nouriel Roubini vs. the Mises Institute?
The Daily Bell
Roubini: Here’s Why a Gold Standard Won’t Work … A gold standard would just make business cycles more extreme, according to economist Nouriel Roubini (left). …What’s more, a gold standard would make central banks unable to fight inflation or deflation, much less do anything to combat persistent unemployment, Roubini said in an interview with NetNet yesterday. “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. Nouriel Roubini “Suppose you have a fixed exchange rate regime… it just exacerbates the business cycle.” – NetNet/CNBC.com
Dominant Social Theme: Get this idea out of your heads! Gold is finished. It’s nonsense. Only more fiat money can save us.
Free-Market Analysis: This is an important article from our standpoint because Nouriel Roubini has always been positioned (or positioned himself) as a practical thinker and “hawk” when it comes to monetary policy. This means that unlike many other economists, Roubini is always criticizing the Federal Reserve for being too soft on inflation. He wants higher interest rates and presumably less money printing in order to retain the value of the dollar. He is in other words a friend to those who are generally critical of the Fed and a protector as well of people’s wealth. Or that is what we have been led to think.