Keynes vs. Hayek on a Commodity Reserve Currency

Graham, F.D. “Keynes vs. Hayek on a Commodity Reserve Currency.” The Economic Journal 54 (1944): 422–429.


“The issues raised in Lord Keynes’ reply to Prof. Hayek’s article on a commodity reserve currency, in a recent issue of this journal, seem worthy of more extended discussion. It will perhaps do no great injustice to Prof. Hayek’s views to assert that he brought the great weight of his authority to an all but unqualified support of the proposal to give “free coinage” to warehouse receipts covering representative bales of the standard storable raw materials of industry and trade. Prof. Hayek believes that the defects of the gold standard lay not in conception, but in adequacy to its task. The gold standard always operated in the right direction, but not with sufficient speed or power.”