Our article this week comes from S.S. Tarapore, former Deputy Governor of the Reserve Bank of India and a noted economist. His article, Resurrection of Gold Standard, does a good job of using history and the current movement for gold to explain his position that “While the full restoration of a gold standard will take time, belated supporters of gold will progressively join the Gold Bandwagon” and draws from the work of the Lehrman Institute and APIA to help make his point. We hope you find this material of interest.
American Principles In Action
Resurrection of gold standard
12 July 2012 , By S.S. TARAPORE
Gold is all set to make a comeback in the global monetary system. Unfortunately, countries such as India, which have run up large reserves in recent years, have not been aggressive in switching to gold.
The gold standard has a long history from times immemorial, but in the past hundred years countries have been emboldened to move to fiat (printed) money, only to come to grief.
The reserve currency system, which has evolved, is the source of what Rueff called “deficits without tears” — to consume without producing which damages economies irrevocably. There is an imperative need to restore real integrity to the world’s monetary system.
Read Full Article Here http://m.thehindubusinessline.com/opinion/columns/s-s-tarapore/article3631881.ece/