Real and Pseudo Gold Price Rules

If central bankers today were required to adopt a gold price rule, their jobs would be easier and their performance—along with that of major economies—would improve considerably. Such a rule would anchor policy in the objective features of history’s most famous and durable money. A gold price rule also could foster an efficient transition to an ideal, feasible, and durable international monetary regime. In these and other respects, it outperforms other rules and no rules at all.