Tuesday, August 28, 2012

Tyler Cowen Comes Out of the Closet

Tyler Cowen, professor at Koch funded George Mason University, has come out of the closet as  a full-fledged gold hater. He tweets:
I don't myself favor a gold standard, but time to start discussing Christie Romer's work on relative gdp volatility over time..
@mattyglesias Right now gold standard would work much worse than ever before, commodity price instability is higher...
Tyler has it ever crossed your mind that the commodity price instability is because we are not on a gold standard and that Fed chairman Ben Bernanke is the most erratic Fed chairman in history?

Here's three month annualized M2 growth since Bernanke has become Fed chairman:

To date, during Bernanke's time as chairman, annualized quarterly money supply (M2) growth has dropped below zero once and it has twice climbed above 15%. Do you think such erratic monetary policy might have something to do with erratic commodity prices? BTW, don't look now, but money supply growth is nose diving again. Another stock market crash is a very real possibility.

1 comment:

  1. I don't think there is any more doubt that fiat money has to be replaced by a better system. There is no more confident in fiat money in the whole world. If gold hater cannot suggest a better system than Gold Standard, they have better keep quiet rather than exposing himself as someone who doesn't know what he is talking about.