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The gold standard doesn't work because it's deflationary. The Eurozone effectively functions as a gold standard. And now we are re-learning why the gold standar
by jganetsk 9y ago
The gold standard doesn't work because it's deflationary. The Eurozone effectively functions as a gold standard. And now we are re-learning why the gold standard is bad when we look at the impact austerity has had on the Greek financial crisis.
- UncleEntity 9y agoThere's nothing inherently bad about deflation, the US economy was basically deflationary for the whole of the 19th century and did just fine. I would explain how the opposite is not true but people a lot more knowledgeable on the subject have written volumes.
- deleted 9y ago[deleted]
- faint_coder 9y agoIf you say so, you don't know anything about macroeconomics, and John Maynard Keynes' thrift paradox. Money MUST BE printed, because players that use it (people and businesses) _GROW_ over time! Did you heard that Facebook ALONE in 2014 generated almost $400,000,000,000.00 in economic activity? How that would haven been possible if we had the same USD volume supply of 1930? How derivatives, futures contracts, options contracts, options writing would be possible with a fixed USD volume at 1930's levels?! What you say is absurd, for modern economies. Please, read some more books on those topics. Thank you.
- hndamien 9y agoThe gold standard wasn't infinitely divisible.