A gold bloc for Iran, Russia and Turkey. . . Oh My!
“In 1997, Bob Mundell predicted that ‘Gold will be part of the structure of the international monetary system in the twenty-first century.’ As has often been the case, Mundell’s prediction might just be prescient. Indeed, Iran, Russia, and Turkey could, and just might, make Mundell’s prediction a reality. One foolproof way to do that is via gold-based currency boards. Currency boards have existed in more than 70 countries, and a number are in operation today. Countries with such monetary institutions have experienced more fiscal discipline, superior price stability, and higher growth rates than comparable countries with central banks.”
USAGOLD note: Interesting speculation from John Hopkins economist, Steve Hanke. His advice on gold-based currency boards can be applied in any emerging country as a counterweight to over-reliance on the dollar and dollar-based debt and currency reserves, not just the one’s mentioned.