16 February 2009
Regardless of the merits or demerits
of the gold standard, Frank Ahrens – reviewing Liaquat Ahamed's "Lords
of Finance" – ignores an important historical fact when he joins
Ahamed in indicting that monetary institution (Feb. 15).
Had Britain in 1925 returned to the
gold standard at a price of gold more consistent with the lower value of the
pound sterling, the troubles suffered then by the British economy would have
been less severe.
Donald J. Boudreaux
Don Boudreaux is the Chairman of the Department of Economics at George Mason University and a Business & Media Institute adviser.