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There is a remarkably widespread view that at least gold has had stable purchasing power.
Furthermore, the country's residents accept the dollar as a medium of exchange because it is well-known and offers more stable purchasing power than local money.
The gist of its objection was that while a gold standard provided stable purchasing power over long periods of time, that was only because inflations were subsequently offset with debilitating deflations.
The Fed also has two formal missions that are codified in law: to promote "maximum employment" (thus its duty to head off recessions) and, of course, to maintain a stable purchasing power, which is generally interpreted as keeping the inflation rate at a tolerable level.
These shock absorbers are needed because governments issue volatile monies, and they're volatile because they're no longer tethered to gold's stable purchasing power.
Consider the American woman of a century ago who couldn't vote, yet could freely enter a business venture; in so doing she paid no federal income tax, suffered no regulatory oppression, and (under the gold standard) was assured of stable purchasing power.
Similar(52)
She began reassembling a breeding and racing stable by purchasing mares that were descendants of Sonny Whitney's best horses.
While the value of gold remains stable, its purchasing power can rise because the value of everything else is falling.
Easy insertion of the implant and stable bone purchase is essential for an ideal dental implantation.
He faded to 12th, adding to the exasperation of Dogwood Stable, which purchased him for $200,000 as a 2-year-old in Lexington, Ky.
An old brick stable was purchased in 1924 and was remodeled by Howe, Manning & Almy, Inc., a Boston firm of women architects, into a French Provincial building.
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