That there were no currency markets before 1971 isn’t an opinion as much as it’s an historical fact. It’s a reminder that whatever readers think of gold, they can’t deny that when the dollar was pegged to it (and global currencies pegged to the dollar) that gold lent money impressive constancy as a measure of value.
Yet when members of the various economic religions are asked fixing what they deem “inflation” today, the Fed is invariably mentioned. Talk about a non sequitur.
If we ignore that the Fed couldn’t control the costs and amount of credit in the U.S. even if it wanted to, we can’t ignore that credit flows and interest rates have nothing to do with inflation as is. Inflation is a currency phenomenon, nothing else.
So if the goal is to end inflation, there’s a simple answer. It has nothing to do with the Fed. And never has.
Read the rest of the article at Forbes here.