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Being 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.
by pja 9y ago
Being 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.