Robert A. Mundell, the 1999 Nobel laureate in economics, died Saturday at 88. A related editorial appears nearby. These are excerpts of his contributions to the Journal editorial pages.
From “Gold Would Serve Into the 21st Century,” Sept. 30, 1981:
Since the breakdown of the U.S. gold standard the U.S. monetary system has produced more dollars than in the entire previous history of the republic. The prices of gold, oil, silver and other commodities have risen more than tenfold and, barring a drastic change in the monetary system, prospects are for more of the same in the future.
Never before in U.S. history has the Treasury had to pay 15% for 30-year bonds, implying an incredibly pessimistic outlook with respect to inflation. It is these considerations that prompt a consideration of the policies needed to restore convertibility of the U.S. dollar to gold. . . .