When President Trump’s economic policies hit the media last month, gold-standard economists like Nobel laureate Joseph Stiglitz and economist Joseph Stigler were all over it.
Stigliz predicted a collapse in prices and predicted that a gold-based standard would lead to higher inflation, which he said would lead consumers to “throw their savings into the stock market and bond market and the financial market.”
The New York Times, meanwhile, was on board with the idea, calling it a “gold standard” that “will create prosperity, not the destruction of it.”
But the New York Fed’s John Williams said that the central bank had no plans to go gold-heavy, noting that the Fed is committed to a “normalization” of monetary policy.
“Our primary objective is to maintain a fairly steady interest rate policy that reflects the economy’s economic fundamentals,” Williams said in a statement.
“We are not pursuing an aggressive monetary policy at this time.
As the Federal Reserve’s policy committee has made clear, we will remain flexible and respond to changes in the economy through the normalization process.”
So what does that mean for the U.S. economy?
Economists have long been skeptical of gold as a monetary tool, and have long worried that the dollar will devalue the dollar and lead to financial instability.
The Fed has long argued that the U,S.
dollar’s value will not decline with the price of gold, but will rather rise with inflation.
However, it remains unclear how this will affect the U.,S.
Economists say that the gold standard would be a disaster for the economy if it fails to keep the value of the dollar stable.
If the U and the world’s other major currencies all depreciated the same amount, it would be devastating to the global economy, said Harvard economist Jeffrey Sachs.
If a gold gold standard is imposed on the world, the U’s dollar value will collapse, and the other major economies would then be forced to devalue their currencies in order to maintain some kind of stability.
But the Fed has said it will not do anything drastic.
“The dollar is not a store of value, and it is not the instrument for international trade or the world economy,” Williams told Bloomberg.
“That would be the end of it.
The Federal Reserve is a central bank.
It has a policy of maintaining an open and flexible monetary policy and will not undertake any extraordinary measures.”
It’s possible that some experts will agree with this position.
The Financial Times reported on Tuesday that the New Zealand central bank, which was set up in 2011 to protect the currency, is set to begin its own gold standard, but it will likely be years before it begins.
That could lead to an increase in volatility in the financial markets.
“If the dollar is to lose value and the euro falls, the Fed will be forced into more aggressive monetary easing, with a consequent depreciation of the euro and a reduction in demand for dollars,” said William D. Taylor, chief U.K. economist at Nomura Securities in London.