Earlier today, at least one economist was ridiculing the gold standard because supposedly while under one, there was “price http://yaneslab.com/contact/ instability”, despite empirical proof by George Selgin that the Fed’s mandate of ‘price stability’ has been a disastrous exercise in complete futility.
For those who have a shorter attention span and can not be bothered with multi-page, non-bulletized presentations, here is an example of your precious centrally planned price stability:
as Sean Corrigan demonstrates, the swing back and forth in the CHF trade weighted index on SNB (non)intervention in one short week is a 11.5 sigma event, or a 1 in 1,516,122,879,893,320,000,000,000,000,000 event, which without central planning price stability intervention would occur roughly once every several trillion qunitillion years.
And the kicker:
a quick look around today’s markets is chock full of such examples. But yes, aside from the facts, the gold standard is a “joke.”
In the meantime, anyone who took said economist’s advice and went long spam and short gold, is broke about 10 times over in the past two years…