Appreciated Quote by Paul Volcker
“That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.”
About This Quote
Source Testimony: Congressional hearing, 1998
He describes a policy mistake: not intervening in gold sales after currency adjustments.
In simple terms: He says not intervening in gold sales was a mistake.
Key Takeaway
Consider proactive interventions in markets.
Themes
economics
policy
currency
gold market
Mood
analytical
cautious
Type
economic
policy
When to use this quote
- central banking
- exchange rate management
- investment strategy
- risk assessment
Key Concepts
monetary policy
market stability
Questions to Reflect On
- What criteria should trigger market intervention?
- How to balance short‑term fixes with long‑term stability?
A Different Perspective
Intervention can have unintended side effects.
![“It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency…” quote by Paul Volcker](https://sms4smile.com/quotes/img-quotes/1ab/paul-volcker-37701_banking_it-is-a-sobering-fact-that-the-prominenc_1339309.jpg)
