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"The gold standard was the primary transmission mechanism of the Great Depression..." https://en.wikipedia.org/wiki/Great_Depression#The_gold_standard_and_the_

• capableweb 6y ago
  You're confusing two different things. What was initially claimed: > gold hoarding caused the economy to collapse in 1929 This makes it sound like gold caused the economy to collapse. But your quote is referring to the Great Depression spreading world wide, so it's quite different. Don't think there is any definite and agree-upon source of what caused the Great Depression, many things interacting together for sure. You can't say that gold hoarding caused the economy to collapse though.
  • BenoitEssiambre 6y ago
    Sure people came up with all kinds of explanations but the most accepted ones speak of deficient Aggregate Demand. Low aggregate demand can almost tautologically be seen as the flip side of too high demand for currency. "We buy newly-produced goods with money. A Keynesian recession is an excess supply of newly-produced goods, and a deficiency of Aggregate Demand. In a monetary exchange economy, a deficiency of Aggregate Demand, and an excess supply of goods, is an excess demand for money. Money is what we demand goods with." https://worthwhile.typepad.com/worthwhile_canadian_initi/2011/03/do-keynesians-understand-their-own-models.html https://worthwhile.typepad.com/worthwhile_canadian_initi/201... I would argue that an excess demand for crypto tokens is quite similar, especially if it gets to the point where companies are stockpiling them.