George Selgin: Fed gold reserves rose gradually with inflows after devaluation

George Selgin: Fed gold reserves rose gradually with inflows after devaluation
Fed gold reserves rose with inflows

George Selgin highlights how the Federal Reserve's gold reserves increased over time rather than experiencing an immediate $2.8 billion jump following devaluation.

He explains that instead of a sudden change as some claim, the reserves grew gradually as gold flowed into the U.S. from abroad. Selgin adds that devaluation played a role in encouraging these inflows.

Selgin has previously critiqued government interventions, describing efforts during spending collapses as bailouts for producers. He has also pointed to the impact of Hoover-era policies and Britain's gold standard exit as major factors in the U.S. depression. These past remarks offer context to Selgin's recent analysis of gold reserve movements.

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