Former Chairman of the Federal Reserve Paul Volcker explains the impact of a new “old fashioned” gold standard on the price of gold and the effectiveness, or lack thereof of the Federal Reserve’s monetary policy in this new video.
Volcker at the 49 minute mark:
“If a gold standard is going to be effective, you’ve got to fix the price of gold and you’ve got to really stick to it.” Volcker continues, “To get on a gold standard technically now, an old fashioned gold standard, and you had to replace all the dollars out there in foreign hands with gold, God the price, you buy gold, because the price of gold would have to be enormous (atlas-sized touchdown hand signal).” Volcker goes on to say “Who thinks that would be maintained?” (scoff).
Volcker continuing from the 50 minute mark:
“The straightforward central banking measures have lost their effectiveness. They have gone as far as they could go.”
The full video from NYU: