Selected in the top 100 Economics Sites

Follow me on Twitter

Friday, January 27, 2012

Newt Gingrich gets the Midas touch. I can't think of a more dangerous idea.


Anonymous said...

What exactly is Bretton-Woods and how does it differ from a true gold standard? I understand the problems with the pre-1930s commodity standard but could Bretton-Woods work? Or rather, why didn't it work?

So who do you support? We know it isn't Obama. Considering this post and your background, we know it can't be Paul or Gingrich. Considering Romneycare I'd be surprised if you are a Mitt supporter. It doesn't look too promising for the US.

ArrrrrghDeeeeee said...

Oh I can think of a more dangerous idea than the gold standard........... go suggest to your wife an "open marriage"........... and that's how the fight started

Randall Parker said...

I am not really happy with any of them to tell the truth. I liked Mitch Daniels but he didn't want to be dragged through the mud. What is going on to the governor of Wisconsin chills me and makes me nauseated however.

Bretton-Woods, like the gold standard was a fixed exchange rate system but it allowed adjustment in the event of persistent balance of payments disequilibrium. The dollar was pegged to gold at $35.00 per oz. and the other countries pegged to the dollar. But it was an adjustable peg. The US committed to redeeming foreign holdings of dollars at any time into gold. When the inflation of the 1970s came around the system blew apart and Nixon ended it on August 15, 1971. I am not a fan of fixed exchange rate systems so I doubt it could work. Greece has a fixed exchange rate with Germany now and it is not working out so good.

It got the name from a ski resort in New Hampshire where the world leaders met and set the system up after WWII.