Bordo, Michael D.; Dittmar, Robert; Gavin, William T. - Federal Reserve Bank of St. Louis - 2006
The classical gold standard has long been associated with long-run price stability. But short-run price variability led … critics of the gold standard to propose reforms that look much like modern versions of price-path targeting. This paper uses a … inflation target provides more short-run price stability than does the gold standard and, although it introduces a unit root …
