Friday, February 23, 2007

Milton Friedman on the Euro

is at this post.....the key point that he made was that this is the first currency recognized as official by independent states that is not backed by gold.

The quote:

The euro is going to be a big source of problems, not a source of help. The euro has no precedent. To the best of my knowledge, there has never been a monetary union, putting out a fiat currency, composed of independent states.

There have been unions based on gold or silver, but not on fiat money—money tempted to inflate—put out by politically independent entities...

No comments: