Thread by @TheStalwart

One argument you hear people make is that the government should adopt a gold standard, because it's important that the currency remain stable, so that business can plan.

But why is that the most important variable to stabilize.

Why not fix the unemployment rate at a low level?

The unemployment rate is a crucial variable for business, so they can make sure there's sufficient consumer demand for their goods. If you're worried about business planning and certainty, it seems reasonable to say that the unemployment rate should be fixed close to zero.

If you're thinking of launching a new consumer good into the market, obviously it's impossible to know for certain how it will be received vs. competing products and so forth. But at least you won't have to worry about a collapse in consumer demand.

A fixed (low) unemployment rate will let businesses do what they do best: focus on delivering products to the market, while allowing them to ignore what they can't do (trying to time the economic cycle).

Some people say that I'm straw-manning the arguments for gold, but I'm not. Very common to see people say that the case for a stable dollar is that the dollar should represent a fixed unit, a lot the kilogram forbes.com/sites/nathanle…