Long-Discredited Positions on the Monetary System

by Thomas L. Hogan
The American Institute for Economic Research

In a recent New York Times opinion column, former Treasury secretary Steven Rattner criticized the nomination of Judy Shelton to the Federal Reserve Board of Governors. Rattner accuses Ms. Shelton of taking “long-discredited positions on the monetary system.”

Specifically, Mr. Rattner claims that the gold standard magnified economic volatility, resulted in more frequent banking crises, and was “a significant culprit in deepening the Great Depression.” Such beliefs may be common to those unfamiliar with monetary history, but they are not consistent with the findings of modern economic research.

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