Steve Forbes Fed is a proposed monetary policy reform proposed by Steve Forbes, the chairman and editor-in-chief of Forbes Media. It is based on a return to the gold standard and its principles of sound money. The plan involves tying the U.S. dollar to gold at an exchange rate of $3500 per ounce, capping inflation at 3%, and limiting government spending relative to GDP.
The proposal has been criticized for failing to address other pressing economic issues such as inequality in income or wealth distribution, public debt levels, or global financial stability issues caused by large banking institutions that are “too big to fail”. It has also been argued that it would be difficult for countries around the world to agree on one single currency standard like this in practice given their different stages of development and unique economic situations. Finally, some economists have voiced concern over whether there is enough gold available in order to back up all existing dollars under this new system if implemented worldwide.
Despite these criticisms, supporters of Steve Forbes’ idea argue that returning the US economy back onto a gold standard could create more stable prices since it limits governments from printing money indiscriminately which can cause inflationary pressures when done too quickly or excessively. Additionally, proponents point out that with fewer fluctuations in currencies due to fixed exchange rates between them (as would happen under a gold standard), international trade may become easier since businesses won’t need to worry about sudden changes in foreign exchange rates making goods suddenly more expensive or less profitable than expected when trading abroad
