The View From 1776
Tuesday, December 16, 2008
Standards vs Chaos
In an address at Fordham University, John Forbes Nash Jr., Ph.D., winner of the 1994 Nobel Memorial Prize in Economic Sciences, told the audience that a monetary standard such as gold is essential to general economic stability and economic prosperity.
Nash told the audience that such financial crises would be less likely to occur if there was some international monetary standard, such as the gold standard or competition among worldwide currencies, to curb inflation and prevent the rise of mortgage abuses. He expressed some skepticism about a government bailout as a solution.