Rothbard shows how money must originate from a commodity. In an ideal system, a dollar would be a unit of weight, and paper money would operate strictly as warehouse receipts for the stock of the monetary metal. There would be no fractional reserve banking. Rothbard offers a rebuttal to the objections to a 100 percent gold dollar raised by Professor Leland Yeager.
Murray N. Rothbard made major contributions to economics, history, political philosophy, and legal theory. He combined Austrian economics with a fervent commitment to individual liberty.
Deflate the dollars, or redefine the dollar’s weight—or some blend of the two.
The supply of money, Rothbard answers, essentially does not matter.
An opponent of gold describes the 100 percent standard better than its friends do.
Mises Institute, 2001
