Inflation on the Gold Standard

Oh, hey, look, the U.S. post war gold bullion standard did not prevent inflation. It just meant that gold and the currency inflated together at the fixed rate. In fact, it was in part the high inflation of the late 1960s and early 1970s that forced the U.S. off the gold standard in 1971.

"Inflation's Stubborn Resistance," Time, Vol. 96, No. 24, 14 December 1970

Inflation’s Stubborn Resistance,” Time, Vol. 96, No. 24, 14 December 1970, pp. 102-112.

Via Neil Irwin, The Alchemists: Three Central Bankers and a World on Fire (New York: Penguin Press, 2013), p. 65.

Advertisements