The actual goal of political economy should be the well-being of the people. Price stability can be a means to that end, but it can also diminish standards of living. Certainly, price stability is not an end in itself.

To clarify what I mean, this current inflationary period is being caused by transient supply disruptions. They’ll clear up on their own. Apart from Japan, what are the central banks of the world doing? They’re trying to throw their economies into recession. Because of transient inflation that was not caused by runaway demand.

It’s tricky to talk about actual gold standard days, since economic data aren’t very reliable that far in the past, but historical accounts don’t exactly paint a rosy economic picture. Whether there was price stability, I’m really not sure, but I do know there was mass unemployment, frequent economic crises, and widespread poverty.

Finally, the Eurozone… Their recession following the global financial crisis lasted longer than other advanced economies, because the Stability and Growth Pact is the opposite of sensible economic administration. Indeed, Europe is in a downward binge-purge spiral of—crisis happens, better ignore excessive deficit rules and let the ECB buy sovereign debt at its discretion; well the crisis is over, time to fuck up European economies again; oh no there’s another crisis, better ignore the SGP again.

At some point I might have to leave the US, so it’s a shame that Europe isn’t a viable alternative.