How much do central banks cost us?

Source: Ludwig von Mises Institute
by Karl-Friedrich Israel

“A classic argument for central bank controlled fiat money goes like this: a commodity such as gold is very costly to produce. All the resources, capital, and labor devoted to mining gold for monetary purposes could be employed elsewhere in the economy, to the benefit of society, if only we had a fiat standard. This argument is by no means conclusive. We would not stop producing Champagne either, just because sparkling water is cheaper. However, there is an undeniable grain of truth in it. At first glance it seems we could save a lot of resources under a fiat standard. But do we really?” (10/11/17)