Paul Krugman lays out the case that a gold standard would cause deflation. He bothers with this because apparently the GOP is seriously considering a return to the gold standard. Deflation, as you’ve read on this blog, is a bad idea; much worse than inflation. So why on earth is deflation so hot with the GOP set, whose core constituencies are the same as the Bryanites of the 1890s who opposed the gold standard as the instrument of those who crucified Our Lord?
The only answer I can come to is that the argument must be, FDR took us off the gold standard; everything FDR did (except fighting Nazis) is evil; therefore we should go back on the gold standard.
This is of course a lousy basis for making policy.
Anyway it’s either that or the GOP are in thrall to the rentier class.