Blog Archives

Central Bank Independence Faces Another Test

Posted in Contemporary economics, US elections

“Central bank independence throughout the world has replaced gold and silver as the guardian of the currency.”  That sentence, towards the end of William Silber’s new book on the downstream consequences of the Silver Purchase Act of 1934, made me pause.  I hadn’t seen it put quite so clearly before. It is true, I think, but what it means may not yet be widely understood . I was reading The Story of Silver: How the White Metal Shaped America and the Modern World (Princeton, 2019) because the aftermath of 2008 convinced me that present-day macroeconomics is seriously out of focus.