Milton Friedman on Trump Fed nominee Judy Shelton. Uncle Milton would be really, really unhappy to see this nomination approved: Milton Friedman (1994): Free-Floating Anxiety https://miltonfriedman.hoover.org/friedman_images/Collections/2016c21/NR_09_12_1994.pdf: 'In a recent Wall Street Journal op-ed piece (July 15) recommending a return to gold, Judy Shelton started her concluding paragraph: “Until the U.S. begins standing up once more for stable exchange rates as the starting point for free trade...” It would be hard to pack more error into so few words. A true gold standard—a unified currency—is indeed consistent with free trade. But a system of pegged exchange rates, such as the original IMF system or the European Monetary System, is an enemy to free trade. It is no accident that the 1992 collapse of the EMS coincided with the agreement to remove controls on the movement of capital...
#noted #2020-02-17
