From Capitalism and Freedomby Milton Friedman
My conclusion is that an automatic commodity standard is neither a feasible nor a desirable solution to the problem of establishing monetary arrangements for a free society. It is not desirable because it would involve a large cost in the form of resources used to produce the monetary commodity. It is not feasible because the mythology and beliefs required to make it effective do not exist.
He hasn't changed his mind since he wrote that 40+ years ago and I think he's got a pretty good grasp of the situation. The problem, I think, isn't so much the lack of a gold standard, but the very existence of the Federal Reserve.
My point is not so much that it is desirable, (although many economists say it is...), but that it is CONSTUTIONALLY REQUIRED - but we aren't doing it. The only way to get around the requirement is a Constitutional ammendment - you CAN'T alter the Constituion by passing a law or signing an Executive order. However, in essence, that's what we've let happen.
