Richard Ebeling emails:
The National Center for Policy Analysis (NCPA) has published an article of mine on “The Federal Reserve and Sound Money.”
We are living through a time of monetary chaos resulting in economic instability and sluggish economic growth due to central bank mismanagement of the money supply and interest rate manipulation.
Taking the long-view and not the zigzags of daily monetary policy by the Federal Reserve, it is time to rethink the existing government controlled paper money system. Money must be restored to the marketplace and out of the hands of the political arena of central banking.
The first step in this direction can a return to some form of a gold standard, under which the supply of money in the economy is determined by market forces of supply and demand, with market-based interest rates coordinating choices of savers with the profit-oriented decisions of investors.
The end goal should be a monetary and banking system completely free of government control and oversight, with a move to a private, competitive free banking system. But until then, a return to some form of a gold standard might significantly reduce the dangers from government monetary mischief.