One of the better arguments I’ve read against the Chartalists and Folk Keynesians lately is here. Here’s the conclusion:
American investors and businessmen do not have lower IQs today than they did in 1966. An unstable currency makes them stupid. An unstable dollar induces both short-term thinking and malinvestment.
The American economy will not grow normally, create jobs normally, and convert investment dollars into real assets normally until we once again have a stable dollar. Until then, our economic nightmare will continue.
I don’t think that a hard metal currency is necessary to have a stable currency. What you do need is commitment and that’s what’s lacking.