Just Another Inflationist for the Regime

Even Greg Mankiw, about as good as it gets in mainsteam economics, can only call for more dollar depreciation. Of course, he’s right when he says the Fed has never been committed to “price stability”–after all, the big banks and the state set up the Fed to inflate–he calls an open renunciation of Fed rhetoric as important as FDR’s tyrannical seizure of the people’s gold and special deal for the plutocrats holding gold overseas. “Of all the things that Roosevelt did to get the economy out of the Depression, jettisoning the gold standard was the most successful.” But this is just another Keynesian myth. The economy did not recover until 1946. By the way, why does this important Republican economist sound like crude 1930s propaganda? Of course, Mankiwian prescriptions will fail too. The disaster began by Wilson with the Fed, Roosevelt with the end of the domestic gold standard, and Nixon with the end of the international gold standard, is coming to an end. (Thanks to Bob Murphy)

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8:48 am on December 17, 2008