Milton Friedman had long argued that floating exchange rates managed by disciplined central banks were superior to the gold standard’s rigidities. European central banks, in the ultimate act of institutional contempt, began actively selling their reserves. The economists’ institutions were visibly struggling. Which explains why central banks bought a record 1,080 tonnes of gold in 2022, the most since the gold standard era, and have maintained that pace since. For the first time since 1996, global central banks now hold more gold in aggregate than US government bonds.

Source: The Star April 10, 2026 01:39 UTC