White House Considers Economist Judy Shelton For Fed Board

That’s the title of an article in Bloomberg:

Shelton, who’s served as an informal adviser to Trump, holds a Ph.D. in business administration with an emphasis on finance and international economics from the University of Utah.

Here is a recent writing advocating return to “sound money”in Cato Journal:

The United States is the world’s largest holder of official gold reserves. Comprising 8,311.5 tonnes or 261 million troy ounces, those reserves are carried at a book value of roughly $11 billion. Notably, the market value is significantly higher at $345 billion (based on the London Gold Fixing for September 30, 2016) as cited in the Treasury’s report filed June 30, 2017 (U.S. Department of the Treasury 2017).

In proposing a new international monetary system linked in some way to gold, America has an opportunity to secure continued prominence in global monetary affairs while also promoting genuine free trade based on a solid monetary foundation. Gold has historically provided a common denominator for measuring value; widely accepted at all income levels of society, it is universally acknowledged as a monetary surrogate with intrinsic value.

Speaking in February 2017, former Federal Reserve Chairman Alan Greenspan defined gold as the “primary global currency” and further added, “We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line” (Oyedele 2017). To confront U.S. indebtedness, we need to restore fiscal discipline and sound money through gold convertibility.

We make America great again by making America’s money great again.

For the sake of the institution, I hope she isn’t appointed and confirmed. Her craziness is not confined to the advocacy for gold convertibility. From my February 2017 post entitled “This Makes No Sense“:

For an econometric evaluation of Dr. Shelton’s proposition of fast adjustment to PPP under gold standard, see here, where I cite Alan Taylor’s “A century of PPP”. (If regressions, and half-lives, befuddle you, then don’t read).

On the other hand, as a social scientist, I am interested in how the combination of (1) a gold standard and (2) a permanent state of trade war would affect the world economy.

Disclosure: None.

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