Next: The Fifth Stabilization Experiment Under Fiat Money

  • Brendan Brown


The global 2% inflation standard is the fourth big experiment in stabilizing fiat money since the collapse of the gold standard in 1914. These experiments emerge from a preceding monetary chaos. The first three failed or were aborted more or less dramatically (the gold exchange standard of the 1920s, the Bretton Woods system of the decade to the late 1960s, and monetarism from the mid-1970s to the mid-1980s). The end of the fourth is most likely to take the form of a big asset crash shock or a big inflation shock which will reveal its deeply flawed foundations. The monetary chaos which ensues will sow the seeds of the next stabilization experiment. Ideally the architects will have learnt the lessons from past failure.


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Brendan Brown
    • 1
  1. 1.Economic ResearchMUFGLondonUK

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