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Paul gives new life to old issue: gold standard

Paul gives new life to old issue: gold standard
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Wednesday, January 18, 2012 - 3:09am

Ron Paul's strong showing in the Republican presidential race is drawing new attention to a cause he has long supported - reviving the gold standard.

Paul advocates an overhaul of the Federal Reserve and believes the government shouldn't be allowed to print money without enough gold in reserves to back it up.

Most economists laugh off the idea, saying it isn't feasible in the modern global economy. But Paul and his supporters insist his plan would keep inflation in check and avoid credit bubbles.

Paul's Republican opponents also criticize the Fed and the Obama administration's monetary policy, but they have stopped well short of calling for moving toward the gold standard.

The U.S. used the gold standard in its early years but largely abandoned it in the 1930s.

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