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The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual realities and the future, potential, best possible conditions of general stable equilibrium which both pure and practical reason, exhaustive in the Kantian sense, show as being within the realm of potential realities beyond any doubt. The first classical revolution in economic thinking, included in factor “P” of the equation, conceived the economic and financial problems in terms of a model of ideal conditions of stable equilibrium but neglected the full consideration of the existing, actual conditions. That is the main reason why, in the end, it failed. The second modern revolution, included in factor “A” of the equation, conceived the economic and financial problems in terms of the existing, actual conditions, usually in disequilibrium or unstable equilibrium (in case of stagnation) and neglected the sense of right direction expressed in factor “P” or the realization of general, stable equilibrium. That is the main reason why the modern revolution failed in the past and is failing in front of our eyes in the present. The equation of unified knowledge, perceived as a sui generis synthesis between classical and modern thinking has been applied rigorously and systematically in writing the enclosed American‐British economic, monetary, financial and social stabilization plans. In the final analysis, a new economic philosophy, based on a synthesis between classical and modern thinking, called here the new economics of unified knowledge, is applied to solve the malaise of the twentieth century which resulted from a confusion between thinking in terms of stable equilibrium on the one hand and disequilibrium or unstable equilibrium on the other.

Charles Oscar Hardy (1884–1948) was a well-known though perhaps not leading monetary and financial economist of his time. He was and is important enough, however, to be remembered and studied a half century later (see Frank G. Steindl, Monetary Interpretations of the Great Depression, Ann Arbor, MI: University of Michigan Press, 1995; J. Ronnie Davis, The New Economics and the Old Economists, Ames, Iowa: Iowa State University Press, 1971; and Allan H. Meltzer, A History of the Federal Reserve, 1913–1951, Chicago, IL: University of Chicago Press, 2003). Educated at Ottawa University, Kansas (AB, 1904) (a private university affiliated with the Baptist Denomination) and the University of Chicago (Ph.D., 1916), he taught at both schools as well as at the University of Iowa. He was Vice President of the Federal Reserve Bank of Kansas City, had a long-term association with the Brookings Institution, and was a frequent advisor to government agencies. Working when the gold standard was in effect, he discerned instability as the likely consequence of excessive gold stocks and resultant credit expansion. An advocate of central-bank monetary management, he worried over limits to its power to create monetary stability because of shifts in the balance of trade and in long-term investment, and called for major reform of the gold standard. Subsequently, he advocated activist monetary and fiscal policy. Hardy also contributed to the development of the theory of risk and uncertainty, a field dominated by his colleague, Frank Knight.

This study uses the autoregressive distributed lag model (ARDL) econometric approach to investigate empirically the effects of cryptocurrencies, the gold standard and traditional fiat money on global income inequality measured based on the Gini coefficient, and various ratios of income inequality distribution such as top 1 per cent, top 10 per cent, top 40 per cent and top 50 per cent.

The study uses the ARDL econometric approach.

The findings indicated that cryptocurrency and gold standard monetary systems contributed significantly to reducing global inequality of income and wealth distribution. Conversely, the traditional fiat money system contributes positively to global income and wealth inequality while also contributing significantly to their fluctuation.

This suggests that the fiat monetary system results in the coercive redistribution of income and wealth if governments pursue a social welfare policy. They must resolve this conflict between the current fiat monetary system and social policy by opting for an alternative monetary system such as cryptocurrency or gold standard. These alternative monetary systems offer the promise of resolving the income and wealth inequality associated with the traditional monetary system which are accompanied with the channels of inflation, lack of financial inclusion and debt creation, and to offer a more sustainable financial system.

The study recommends that monetary policy must be revisited to account for its direct effect on income and wealth redistribution to achieve social welfare goals.

The purpose of this paper is to contribute to understanding modern monetary arrangements from a Marxist perspective that takes into account recent developments in the Marxist theory of world money. The paper treats the US dollar as a primus inter pares quasi-world money and challenges the argument of US hegemony by exploring the behavior of major capitalist states and selected developing countries, the BRICS, in so far as their official international reserves are concerned. The findings reveal a clear pattern in the behavior of major capitalist states in terms of the size and form of their reserves with the variations in them implying a hierarchical structure of the corresponding quasi-world moneys. The analysis focuses on developed countries and treats them individually. The merit of this approach, distinctive in the literature on international reserves, is that it reveals the above-mentioned pattern which is blurred when Japan is included. The results imply that current international monetary arrangements reflect and promote multipolarity and competition on the geopolitical scene, the evolution of which is historical.

Eugene Meyer governed the Federal Reserve Board during most of the Great Contraction. Yet his role and import are almost unknown. He was not misguided by incorrect policy indicators or the real bills doctrine; the usual explanations for the failure of monetary policy. Meyer urged the adoption of expansionary policies and created the Reconstruction Finance Corporation to assist banks, especially nonmembers. However, the diffusion of power enabled the district bank Governors to stifle his efforts, although an expansionary policy was finally adopted in 1932. His unquestioning commitment to gold and lack of operational authority are the reasons policy failed.

After the collapse of the Bretton Woods fixed exchange rate system in 1971, countries moved towards floating exchange rates, and the expectation was that the requirement for foreign reserves would decrease. However, central banks currently hold more foreign exchange reserves to enhance the credibility of exchange rate policies. The demand for gold, which was the main reserve asset prior the collapse of the Bretton Woods system, has increased as a reserve asset once again following the global financial crisis (GFC) of 2008, given gold’s characteristics as a safe haven asset and a store of value. This study aims to analyse official reserves of four countries, namely, Malaysia, Turkey, KSA and Pakistan. The Black–Litterman model was used to build a new strategic portfolio with optimal allocation to gold. This study shows that all countries under the analyses should increase their gold holdings to preserve the value of the portfolio during times of financial turmoil.

The Black–Litterman model has been used to build a new strategic portfolio with optimal allocation to gold. The study shows that all countries in our analyses suggested increasing their gold holdings to preserve the value of the portfolio during times of financial turmoil.

The study found that countries under the analyses, namely, Turkey, Malaysia, KSA and Pakistan, suggested increasing their official gold holding given the outstanding performance of gold during the GFC.

Research can be further extended by including few more countries from Organisation of Islamic Cooperation such as Qatar and Indonesia.

Emerging economies such as China, India and Russia started to sharply increase their official gold holdings in the aftermath of the GFC. According to recent statistics, central banks of China and Russia have been adding to their gold reserves. Of note, only in few European countries and in the USA, is the share of gold in foreign reserves more than 50%. In the rest of the world, this figure is about 3-5%. The paper elaborates the aforementioned subject and suggests the strategic weight of gold reserve for each country under analysis.