Daily Archives: January 24, 2011

Gold Standard II

Law trumps economics, or should.

The gold standard embodies this principle.  It codifies how value is to be measured without valuing any particular thing.  It is directly, precisely analogous to setting up other systems of weights and measures by law, such as gallons to measure volumes of liquid, fahrenheit or celsius degrees to measure temperature, feet or yards or meters to measure length, pounds or grams or tons to measure weight.

You would think that “weights and measures” would not be the kind of thing to arouse passions, but you would be wrong.  Controversy has attended daylight savings time.  But it would be fair to say that this happens only among a very few people.  Most people are content with any convention of weights and measures that is imposed by law as long as it is neutral and consistent.

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