<blockquote>
“There are numbers of us, myself included, who strongly believe that we did very well in the 1870 to 1914 period with an international gold standard."- Alan Greenspan</blockquote>
Since Posen and other economic mainstream experimenters base their economic doctrines on empiricism, one is surprised that they are seemingly ignorant of the period in question. It was a time of persistently, if slightly, falling prices, coupled with the strongest growth in real
per capita incomes US citizens have experienced since – well, since then, period. Such an uninterrupted and strong phase of growth in the citizenry's real wealth was
never again repeated. This happened under a gold standard and before the Federal Reserve was created. We repeat here what we said in a
previous post: if 'we' really wanted monetary stability, 'we' wouldn't have instituted a central bank and a fiat money system. We'd have left well enough alone.
- Pater Tenebrarum,
A Review of The Policy of Inflation, January 24th, 2011