Tuesday, October 14, 2014

Laffer - Reinstatement of the Dollar: The Blueprint

Restoration of a link between gold and the dollar does not, per se, guarantee stability.  Done improperly, such a policy change could cause enormous dislocations to the economy.  The blueprint for a successful return to dollar convertibility, presented here, includes a transition period to assure that it is the gold market, not the economy, that makes the initial adjustment inherent in a return to a gold based monetary system.  “Safety valves” also are provided to minimize the chances of altercations in the gold market being force upon the economy as a whole.

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