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Rueff’s analysis of the gold-exchange standard explains a number of interconnected U.S. economic problems, including chronic inflation and deflation, the loss of federal budget discipline, and the steady decline in the U.S. international investment position.

This replaced the gold standard with the “gold-exchange standard.’

An empirical review published in 2011 by the Bank of England — not exactly a “fever swamp” — of the performance of the fiduciary currency standard relative to the performance of the Bretton Woods gold-exchange standard and the classical gold standard, found, as then summarized by Forbes.com contributor Charles Kadlec:

In doing so, Professor Krugman seems to recapitulate the debate between Jacques Rueff and John Maynard Keynes, who advocated replacing gold with official foreign exchange reserves in his 1913 book, Indian Currency and Finance, where he argued that whether a central bank holds its reserves in gold or in foreign exchange “is a matter of comparative indifference,” and that “in her Gold-Exchange Standard, . . . India, so far from being anomalous, is in the forefront of monetary progress” heading toward “the ideal currency of the future.”

There is a strong correlation between the post-war equitable prosperity to which Madam Yellen alluded and the post-war Bretton Woods gold-exchange standard.