Microblogging: August 23, 2012
Barry Eichengreen vs. Paul Ryan

Paul Krugman: Golden Ferrets, I Mean Fetters

Paul Krugman:

Golden Ferrets, I Mean Fetters: Well, Romney did compare the Tea Party to a ferret in a dishwasher.

But seriously, it appears that a push for a return to the gold standard — the Golden Fetters that played such a large role in propagating the Great Depression — is going to be part of the Republican platform. Bear in mind that the incessant warnings of runaway inflation from the expansion of the Fed’s balance sheet have been wrong, wrong, wrong; and that exchange rate flexibility has been crucial to most of the success stories of this crisis, from Poland to Sweden to Iceland. Nonetheless, the GOP is convinced that what we need to do is base future monetary policy on a doctrine that has totally failed in recent years. After all, Francisco d’Anconia says that it’s the only way.

I would point out that, as Paul Krugman knows well, Francisco d'Anconia--and Ayn Rand, and Paul Ryan--say not that a gold standard but a gold coinage is the only way: none of these paper bills or checks or credit cards or bills of exchange or fractional-reserve banking…