Professor Yeager and 100 Percent Gold

Leland Yeager, an advocate of freely fluctuating fiat money, concedes that a 100 percent gold standard would end reserve drains, forced contraction, and balance-of-payments anxiety—problems he attributes to fractional reserves rather than to gold. Rothbard quotes him at length, asks why he rejects what he has just praised, and pushes the reductio further: where exactly is the geographical boundary of a money?