He was one of the first people to predict, correctly, that a system of freely floating exchange rates, unconnected to gold, would work just fine.
Of course, many crises happened during the gold standard era, before floating currencies appeared in 1971.
FORBES: Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money
Once we pick a number, then sometimes the issue comes up of a transition period, from the present floating system to the initiation of the gold standard system.
There was a Panic in 1873, which happened while the dollar was a floating currency, before it was relinked to gold in 1879.
FORBES: Let It Be Known That No Financial Crisis Was Ever Caused by Stable Money
Moreover, abandoning the gold standard in favor of free floating currencies was supposed to eliminate currency crises and lead to an automatic adjustment in trade imbalances.
FORBES: An International Gold Standard Beats The Rule Of The Governing Elite
In 1821, Britain went to a gold standard system after 23 years of floating currencies.
FORBES: A Return To Stable Money Requires More Intellectual Gasoline
In 1879, the U.S. went to a gold standard system after 19 years of floating currencies.
FORBES: A Return To Stable Money Requires More Intellectual Gasoline
This effect was not caused by the gold standard system itself, but rather from the decisions made as to how to return to a gold standard system after a period of floating currencies.
The last parking lot for floating palaces that got approval to be built, the Gold Coast Marina, opened in 1993, and now the city's eight marinas are filled to capacity.
Jude Wanniski, editor of Supply Side Investor, has been an outspoken critic of the floating dollar and argues that inflationary and deflationary cycles would be eliminated by a return to the gold standard.
If a country adopted a gold standard system today, the result would be violent swings in exchange rates with other, floating currencies.
FORBES: 40 Years Of Floating Money, 40 Years Of The Average Worker Getting Poorer
Japan reinstated a gold standard in 1871, 1897, 1930 and 1949, each time after extended periods of a floating currency and sometimes hyperinflation.
FORBES: There Are Only Three Ways To Reinstate a Gold Standard
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