4 ms·
When I look at a two hundred year US inflation/deflation graph, it looks like taking us off the gold standard provided some form of damping.
by akeck 9y ago
When I look at a two hundred year US inflation/deflation graph, it looks like taking us off the gold standard provided some form of damping.
- pja 9y agoBeing on the gold standard means occasional depressions caused purely by the inability of the supply of gold to keep up with the expansion in the economy IIRC.
- dlp211 9y agoAnd while it may have not played out historically in the US, the opposite side of that coin, that is a glut of gold, is just as devastating to an economy.
- dragonwriter 9y agoDidn't happen to the US, but did to Spain.
- pm90 9y agoAdditionally, glut of new world silver also greatly damaged the economies of India and China, which heavily used silver currencies at the time.