November 8, 2010, 2:34 pm — Updated: 11:27 pm -->
By CATHERINE RAMPELL
Evan Vucci/Associated Press Robert Zoellick.
This proposal was somewhat unexpected, considering the source:
The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.
That is Robert Zoellick, president of the World Bank, writing in The Financial Times over the weekend.
The gold standard was abandoned nearly 40 years ago (here is a useful chronology of gold and other currencies). Martin Wolf recently wrote a nice summary of economists’ main objections to calls for its return.
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