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> In the era of the gold standard, there were no great depressions Apart from this one? https://en.wikipedia.org/wiki/Great_Depression https://en.wikipedia.org
by manarth 6y ago
> In the era of the gold standard, there were no great depressions
Apart from this one? https://en.wikipedia.org/wiki/Great_Depression https://en.wikipedia.org/wiki/Great_Depression
> "The gold standard was the primary transmission mechanism of the Great Depression"
- splintercell 6y agoIs your understanding of this only from that line or do you have a more deeper take on it. Back in 1920s, govt could 'adjust' the gold standard by changing the rate whenever they wanted. Wanna double the money supply by 60%? Change the gold standard peg from 1.505g to 0.888g of gold. When you didn't do that, you got a very short lived depression of 1920-1921 [1]. When you did, like FDR did in 1933, you got a long, extended deperession. 1. https://en.wikipedia.org/wiki/Depression_of_1920%E2%80%931921 https://en.wikipedia.org/wiki/Depression_of_1920%E2%80%93192...
- nickles 6y ago> When you did, like FDR did in 1933, you got a long, extended deperession. But the Great Depression began in late 1929. FDR's decision in 1933 retroactively extended the depression by 3 years?
- splintercell 6y agoGreat depression didn't end till 1939.
- notahacker 6y agoBefore that Great Depression, the term 'Great Depression' referred to the 23 years of economic crisis which started in 1873 and ended only when gold was found in the Yukon... Tying economic growth to the availability of gold was a disaster.