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Exact(27)
The value of the dollar should be stabilized against gold or a basket of commodities (the 21-commodities-based system used in the 1990s by Fed Vice Chairman Wayne Angell would work).
Triffin's suggested solution was to create an artificial reserve asset, tied to a basket of commodities.
While gold does provide some protection against spikes in inflation, a broader basket of commodities provides more substantial protection.
"If you're trying to put together a basket of commodities or other investments to hedge against inflation, I would have physical gold and energy shares," Mr. Guinness said.
Rather than latching onto the metals upsurge or even more fickle agricultural products, investors can find funds that offer a diverse basket of commodities.
Success depends, in part, on owning a basket of commodities so that local factors that affect price, like the weather, do not become too dominant.
Similar(33)
Mr. Moore said he would prefer to peg monetary policy to a basket of commodity prices, which he said would have a similar constraining effect as the gold standard on policymakers.
Although a basket of commodity prices may have been the main tool, the effect was to gradually stabilize the dollar's value against gold.
"Other commodity currencies face a similar outlook," Forrester said, "therefore, we still prefer to express our view via a long position in a basket of commodity currencies vs. the G3".
The very best the Fed can do is establish a rule for its monetary policy decisions (perhaps based on a market basket of commodity price changes), announce the rule to everyone to take the speculative guess work out of monetary policy, and then get out of the way of the supply side of the economy.
The money that retail investors have in alternative investments in the United States, ranging from baskets of commodities to mutual funds that employ sophisticated trading, more than doubled from 2008 to 2012, to $712 billion from $312 billion, according to McKinsey & Company.
More suggestions(18)
basket of goods
basket of production
basket of merchandise
basket of good
basket of commodity
basket of commodities
basket of indicators
basket of features
basket of fries
basket of measures
basket of kittens
basket of currencies
basket of metrics
basket of pollutants
basket of oranges
basket of fabrics
basket of condoms
basket of pears
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Justyna Jupowicz-Kozak
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