Archive for July, 2012|Monthly archive page

Returning to Gibson’s Paradox

The orthodox description of the mechanism of changes in the price of gold was written by Robert Barsky and Larry Summers in their famous 1988 paper, “Gibson’s Paradox and the Gold Standard“. I lack the intellectual standing to refute it, but I would like to suggest that this description may now be insufficient in light of price action over the last 40 years. Continue reading