The Monetary Economics of Benjamin Graham
by Perry Mehrling Barnard College, Columbia University New York, NY
"Return to gold convertibility is not the answer either, because the price of gold no longer depends on its intrinsic value, but rather is determined by its artificially inflated monetary value. This emerging defect of the orthodox gold standard is, Graham suggests, one reason for the superficial attractiveness of various schemes for managed money (n.5, p. 257). The fact remains that convertibility into gold no longer provides the kind of connection to real value that is required for a good currency.10 So what is to be done?"