Goldbuggery Arrives On The GOP’s National Platform

“…Unfortunately for the GOP, there are huge policy problems with a gold standard. As Fed Chairman Ben Bernanke pointed out, there isn’t enough gold to back the supply of money the economy actually needs. Worse, a gold standard would shackle monetary policy’s ability to respond to economic downturns. Interest rates could not be lowered to combat recessions or high unemployment. Instead, they would be driven by the price fluctuations of the gold supply, regardless of the needs of the broader economy.”