Proposal: National Stock Indexes Gradually Replacing Inflation Monitoring
For centuries, most governments have "controlled their currency", because most governments foresee the need to do so in emergencies. The list of government rulers who then manipulated the money supply for unauthorized purposes is a long one.
By the time of the Bretton Woods conference in 1945. even a hybrid precious metal standard had to be abandoned as too inflexible. President Nixon closed the "gold window" and Lyndon Johnson closed the "silver window". The virtual standard of inflation monitoring seemed to work for three decades, but the refinement of the Phillips Curve seems to be tottering us into a situation which may not be manageable. What now?
Originally published: Wednesday, October 03, 2018; most-recently modified: Wednesday, December 18, 2019