Friday, March 26, 2010

Bernanke and the GD

I was trying to understand the gold standard and the difference between the system that had been followed prior to 1933 and between 1933 and 1971. Beginning from this article, I found this wonderful 'speech' by Bernanke from 2004. I am currently reading 'On the Brink' by Hank Paulson, and he had commended Bernanke's ability to write a good speech - now I agree :)
The speech talks about the 4 main reasons for the GD as 'discovered' by Milton Friedman and Anna Schwartz and he goes on to elaborate how adhering to the gold standard and protecting that system - almost blindly - was a huge reason for the GD.

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