Dr. Sowell left the solution as an exercise for the student, so here it is:
Some would suggest reverting to the gold standard. But the value of money is not the price of some fixed commodity. Tying the dollar to gold is simply a recipe for deflation -- or inflation if some new deposit of gold ore is discovered (just ask the former Spanish Empire).
A dollar represents a share of the ENTIRE economy. If the economy grows, more dollars must be created. If it shrinks, dollars must be destroyed.
So the solution is simple -- remove the Fed's mandate to tie the money supply to unemployment (of all things!).
Instead use a computer to AUTOMATICALLY tie the money supply to GDP.