Monday, May 24, 2010
Einstein the economist!
Albert Einstein was arguably the smartest human being to ever walk the face of the earth. Here are two wonderful quotes where he talks about the gold standard and macroeconomics.
(Special thanks to Warren Mosler, who dug these up.)
“The gold standard has, in my opinion, the serious disadvantage that a shortage in the supply of gold automatically leads to a contraction of credit and also of the amount of currency in circulation, to which contraction prices and wages cannot adjust themselves sufficiently quickly.” (1934)
“If we could somehow manage to prevent the purchasing-power of the masses, measured in terms of goods, from sinking below a certain minimum, stoppages in the industrial cycle such as we are experiencing today would be rendered impossible.” (1934)
Now...who's going to argue with Einstein?