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But you were on the gold standard then!
by yxhuvud 10y ago
But you were on the gold standard then!
- WalterBright 10y agoSort of. I suspect much of the banking collapse in the 30's was due to the value of the dollar dropping in half since WW1, yet the exchange rate with gold stayed the same. Like all fixed conversion rates, there's an inevitable huge correction. That manifested itself in the bank runs of the 30s, which only stopped when FDR suspended gold exchange.