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In the late 1800s the Democratic party under William Jennings Bryan was campaigning for bimetallism, which would cause inflation, in order to help farmers becau
by twblalock 7y ago
In the late 1800s the Democratic party under William Jennings Bryan was campaigning for bimetallism, which would cause inflation, in order to help farmers because inflation would make their debts less significant. This is one case of people wanting inflation.
Actually if you look at the history of the gold standard in the United States, and the bimetal gold/silver standard, you'll see that the gold standard is far from a simple solution and it had a lot of problems.
One of the biggest problems: how should the government decide how much gold/silver/whatever a dollar should be worth, and when should that decision be re-evaluated?
Similarly you can look at the economic damage caused by Britain bringing back the gold standard in the 1920s, and also how absurd the Bretton Woods system became over the years as the exchange rates pegged to gold started diverging more and more from economic reality. The gold standard has tons of problems.