James Hamilton — "Why not abolish the Fed and return to the gold standard?"

James Hamilton recites the facts and figures and provides charts showing that the gold standard doesn't ensure either financial stability or price stability, as gold bugs advertise it does. Gold is deflationary and favors creditors. In economic downturns it results in debt deflation and depression.

See it at Econobrowser
Why not abolish the Fed and return to the gold standard?
by James Hamilton

I recommend reading Pennies from heaven: How Mormon economics shape the G.O.P by Chris Lehmann (Harper's Magazine, Oct 2001) in conjunction with this. Explains a lot of what otherwise may seem somewhat mysterious. Combine Mormon economics with Murray Rothbard's Libertarian Austrian economics and traditional fiscal conservatism, and one sees how contemporary GOP economics is constructed. It's just about the opposite of MMT.