Count that ‘GOLD’ back!

Economist S.S. Tarapore writes: 

• A reserve currency which is not linked to gold necessarily has to become weak. For the next 40 years international monetary pundits felt that somehow the system of a reserve currency would remain stable through so-called international monetary co-operation. Economist Wilhelm Röpke, 60 years ago, said that the more countries talk about international co-operation, the less countries co-operate with one another! 

• The Washington D.C. based American Principles Project (APP), on the Gold Standard 2012, is an attempt to reach out to lawmakers to advance legislation to put the US back on to a gold standard. The APP has recently prepared a White Paper on the “Use of gold as the primary reserve asset by international central banks” by Ralph Benko, Charles Kadlec, Richard Danker and Nick Arnold (December 2010).

See his earlier article on "Hayekian approach: Lasting relevance for India"