A gold standard would make business cycles more extreme and make it impossible for central banks...

|By:, SA News Editor

A gold standard would make business cycles more extreme and make it impossible for central banks to fight inflation or deflation, Nouriel Roubini says. "A fixed exchange regime... just doesn't work. Because in that world, monetary policy by definition instead of being counter-cyclical becomes pro-cyclical... It just exacerbates the business cycle."