BERKELEY – Complaints about the inflationary effects of American monetary policy are rampant, despite there being barely a hint of inflation in the United States. Rapidly growing catch-up economies are paddling furiously to avoid being dragged down by a torrent of capital inflows. Prominent policymakers, desperate for alternatives to America’s malfunctioning monetary system, have gone so far as to allude to a return to the gold standard.
I am not talking about 2011, but about 1964. We have been here before.