Golden Straw Man

by Don Boudreaux on March 29, 2007

in Economics, Myths and Fallacies

In response to this note that Paul Krugman has in the current issue of The New York Review of Books, I sent this letter:

Dear Editor:

Discussing Milton Friedman’s monetary economics, Paul Krugman says that “he showed himself much less doctrinaire and much more realistic than many of his acolytes: many conservative economists are drawn to visions of a restored gold standard or a world currency, dismissing the problems such a system would create” (Letter, April 12).

Krugman utterly distorts the views of market-oriented economists.  Only a tiny, insignificant fringe advocates a gold standard.  Many more – influenced by the works of F.A. Hayek, Ben Klein, Gordon Tullock, Larry White, George Selgin, and Kevin Dowd – support competition among money issuers.  This proposal is as far from advocacy of a gold standard or a “world currency” as one can get.

Krugman’s creation and destruction of straw men is deplorable.

Donald J. Boudreaux


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