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Wednesday, April 6, 2011

THE MELLON DOCTRINE NYT KRUGMAN

Why should Keynesianism, at least in principle, be considered at odds with hard currency?


One big problem has been that the world has gone off the gold and silver standard.


In the old days, arguments were made not to allow domestic currency abroad; one had to exchange money for foreign business deals as they occurred. 


Bretton Woods made the dollar not only the world's reserve currency (still 'backed', at least until 1971 I believe, by gold), but thereby increasingly took its control out of US hands, more or less.

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