from the Wall Street Journal, Judy Shelton in Trump’s Contribution to Sound Money The source of trade anxiety is a broken global monetary system that distorts price signals with sharp currency moves.

No serious economist would claim today that the “dirty float” intervention tactics practiced by numerous countries would be remotely acceptable within the freely flexible exchange-rate system envisaged by Nobel Laureate Milton Friedman. Nor would anyone suggest that any coherent mechanism exists comparable with the fixed-rate system anchored by a gold-convertible dollar that reigned in the decades following World War II.


Global money management is a difficult and complicated task but its implication on nations’ economies is enormous.  The float creates both a discipline and a risk of manipulation. In the absence of a standard such as gold the fixed exchange rate system is also subject to manipulation.”As former Federal Reserve Chairman Paul Volcker has observed: ‘Trade flows are affected more by ten minutes of movement in the currency markets than by ten years of (even successful) negotiations.’” (tips to Greg George)

Economist Greg George also commented, “That being said, a free trade policy with clean floats is preferable to dirty protectionism all day long. “