Like most of the time when it comes to gold in monetary discussion, the antis are talking impatiently and irrationally. Rudi Dornbusch proves it once more in his column "Back to the gold standard? Only in Steve Forbes's dreams" (Economic Viewpoint, Feb. 19).
He should review his history. The success of the gold standard and the stability of the purchasing power of money is a proven fact--for two and a half centuries (if we start in 1694) in England and Scotland, for more than a century in France, and hardly less than one in the U.S. So, where is the myth? What is the comparative record of flat currency systems?
Further, there is no better way than a gold anchor to nip any expectations of inflation in the bud and obtain the lowest yield curve you can have in given financial circumstances.
You cannot have an honest world market order with bureaucratic flat currencies. A gold standard is not only the best way to denationalize money. In fact, it is just the normal conclusion of a laissez-faire program.