Did Ron Paul call for bimetallism?

I didn’t watch the debate, but I see talk of Paul and bimetallism on my Twitter feed.  Note that bimetallism is better than a pure gold standard, as it is less likely to bring dangerous deflation.  Under bimetallism, you fix a gold-silver parity.  Eventually the equilibrium price for gold and silver, vis-a-vis each other, will deviate from that parity.  People will hoard the legally undervalued money, and the legally overvalued money will circulate as a medium of exchange (“bad money drives out good,” as they used to say).  Think of it as randomizing your medium of account: you get whichever medium of account is more inflationary (less deflationary), gold or silver.

Here is Milton Friedman defending bimetallism.

Every now and then some joker comes along and wants to legally fix the price of forty different commodities and use that as money, etc.  Think of it as another path to stimulus and maybe quite a credible one!


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