MAKING THE TRANSITION TO A NEW GOLD STANDARD.

The article focuses on the gold standard as a potential monetary regime and change to monetary policy in the U.S. The author explores the least costly way for the U.S. to transition to the gold standard. Two paths leading to this transition are discussed by the author, namely the setting of a date after which the U.S. dollar is solely defined based upon grams of pure gold and the growth of a parallel gold standard along with the current fiat dollar. The author emphasizes that the endogenous nature of the gold standard would signify little need for monetary policy by the federal government in the country.