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Except he hasn't.

Under the gold standard, there is a feedback loop allowing the market to control inflation (that is, people can invest more or less in mining technologies/companies).

To some extent, this feedback loop also exists in a central banking system; it's far from being as efficient.



Under the gold standard, there is a feedback loop allowing the market to control inflation

Why would one want to control inflation? Inflation does not have anything to do with economic health, does it? http://www.globalpolicy.org/socecon/bwi-wto/jubi2000.htm

below 40% inflation per year, 'there is no evidence that inflation is costly'. Furthermore, there is no evidence of a 'slippery slope' there is no evidence that one increase in inflation causes further increases. Thus 'the focus on inflation ... has led to macroeconomic policies which may not be the most conducive for long-term economic growth.'




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