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aside of Krugman, $35 worth of goods and services in 1970 worth about $233 according to https://www.officialdata.org/us/inflation/1970?amount=35 https://www.off
by lebed2045 6y ago
aside of Krugman, $35 worth of goods and services in 1970 worth about $233 according to https://www.officialdata.org/us/inflation/1970?amount=35 https://www.officialdata.org/us/inflation/1970?amount=35, so it's not currency problem but the gold itself went up.
- AnimalMuppet 6y agoIt's not that simple. The government fixed the price of gold at $35 in (IIRC) 1933 or so. [Edit: 1934.] They kept the same price until 1970 or so, when they allowed gold to float. Then all the inflation from 1933 to 1970 showed up in a sudden run-up in the price of gold. That is, the price of gold in 1970 was highly distorted. It was not a market price. You can't use that price as your starting point.