Re: Fiat money can be as good as gold, possibly better...
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Gold reserve currency is only one way to bind monetary policy to rules, it's by no means the only way nor necessary.
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gold only binds monetary policy rules until the bind is too restrictive for govt/authoritative figures. this is the debate i've had numerous times with gold backers saying that gold won't work b/c it doesnt allow flexibiliity of monetary policy. eventually the gold system as we know it today and recently cracks b/c the policy needed to avoid a devaluuation (or revaluation) is the opposite of what is "needed" for the economy.
but i agree gold backed currency (if kept to it) does bind monetary policy.
Barron
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