a bit of respect., page-13

I have no idea about who is financing the think tank that you mention. Actually I don't even care. What I know are these facts:

Fact No 1. One thing is economic stability which deals with variations in economic output and another is price stability which deals with variations in the general level of prices. To my understanding the gold standard was only good at guaranteeing long term price stability but very poor at guaranteeing short term price stability an economic stability.

For some reason America went to the trouble of creating an institution called the FED, and I wonder what that reason must have been.

See notes 1, 2 and 3 bellow.

Fact No 2. "There are plenty of think tanks on the right, funded at levels beyond the left’s wildest dreams. Conservative think tanks are short of new ideas because new ideas were the last thing the billionaire funders of those institutions wanted. What they wanted, and still want, is validation of their prejudices; if someone at a right wing think tank forgets the nature of his job and actually, you know, does some independent thinking, he quickly gets fired."

Note 1.

"Although the gold standard brings long-run price stability, it is also historically associated with high short-run price volatility.[55][68] It has been argued by, among others, Anna Schwartz that this kind of instability in short-term price levels can lead to financial instability as lenders and borrowers become uncertain about the value of debt."

Note 2.

[while on gold standard] "In the first 10 months of 1930, a total of 744 US banks failed. In Novmeber and December of that same year, 600+ more banks failed.

Throughout the entirety of the Great Depression, over 9,000 US banks failed, which is by far the worst stretch in US history when it comes to bank failures."


Note 3.

http://wiki.answers.com/Q/What_was_the_key_reason_for_the_creation_of_the_federal_reserve_system