An article in the Atlantic referred to a poll of economists that found no support for the

Question:

An article in the Atlantic referred to a poll of economists that found no support for the United States to readopt the gold standard:
It prevents the central bank from fighting recessions by outsourcing monetary policy decisions to how much gold we have-which, in turn, depends on our trade balance and on how much of the shiny rock we can dig up. When we peg the dollar to gold we have to raise interest rates when gold is scarce, regardless of the state of the economy.
Why does the writer state that a gold standard would prevent "the central bank from fighting recessions"?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

Question Posted: