Friday, Feb 27, 2009
I think there are problems with the present international monetary system which have not received sufficient attention... Make no mistake about it, this is a unique moment in economic history where the world is going on the basis of fiat currencies. And that's kind of what a lot of economists like, and they thought it was a good idea, and let them flow up and down, and you don't get restricted by gold or other artificial arrangements. But it's a little tricky if you're gonna work on a world of fiat currency, you better pay attention to the stability of that currency and the maintainability of the currency, and I think we're inclined to forget about that.
Paul Volcker, Chairman of the President's Economic Advisory Board, Joint Economic Committee, February 26, 2009, http://www.youtube.com/watch?v=B40plELYMGE.