Judy Shelton advocates gold clause to stabilize U.S. dollar

In recent discussions around monetary policy and currency stability, Judy Shelton has explored potential avenues for establishing a sound monetary regime. Her focus is particularly on the implications of the Federal Reserve's wide policy discretion, which can result in unpredictable and unstable monetary conditions. The fluctuations in dollar value over the decades highlight the need for stability, as significant depreciation has tangible implications for business operations and economic growth. Shelton emphasizes the importance of standardizing currency and posits that incorporating a gold clause in U.S. Treasury bonds could provide a reliable method for discovering an appropriate convertibility price. Such a move would enable better management of the dollar and highlight the responsibilities of government institutions in maintaining currency value. Furthermore, economic pressures from capital outflows would act as a check against undesirable monetary policy practices. The conversation surrounding these monetary issues points to a growing awareness of the potential costs associated with unstable currencies and the need for a more sound approach to managing the monetary system.