A crisis brings out the worst and best in everyone, so here we see the Wall Street Journal running an article by Judy Shelton, in which she says “Given that the driving force of free-market capitalism is competition, it stands to reason that the best way to improve money is through currency competition. Individuals should be able to choose whether they wish to carry out their personal economic transactions using the paper currency offered by the government, or to conduct their affairs using voluntary private contracts linked to payment in gold or silver.”
Outstanding, and more radical than I can recall her previous position. I’m under the impression she used to favor a 19th century style gold standard or even a Bretton Woods type system. Here she seems to argue the pure Hayekian-Rothbardian view that government should just let markets completely manage money.
Nice to see. (Thanks Benjamin Weingarten)