I recently came across this journal article[0]. Basically it outlines how getting off the gold standard leads to where we are today due to a cycle of.. 1.

I recently came across this journal article[0]. Basically it outlines how getting off the gold standard leads to where we are today due to a cycle of.. 1. Economy isn't doing as well as we hoped. 2. Central banks lower the interest rates. 3. Households and governments go further into debt now that they can get cheaper loans. 4. We get a boom! Asset prices rise. 5. The boom gradually ends as all available credit has been lent. 6. People start paying off their debt, and the savers who they are paying end up saving more and more. The wealthy don't buy 200x as much food, etc... 7. Economy isn't doing as well as we hoped. One of the key lines in the article... > In words, this implies that if the richest households’ wealth rises by 10%, the interest rate has to come down by 32 basis points [0] https://scholar.harvard.edu/straub/publications/indebted-demand https://scholar.harvard.edu/straub/publications/indebted-dem...