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Weren’t there a number of long painful recessions in the US during the 1800s - when currency was tied to gold?
by BostonEnginerd 6y ago
Weren’t there a number of long painful recessions in the US during the 1800s - when currency was tied to gold?
- marcosdumay 6y agoYes, and the most accepted theory nowadays is that gold-tied money was a leading cause of the ~10y cycle we saw at the 18th century. As soon as countries adopted fiat money, that one cycle mostly disappeared and even its timing became much more variable. But there are a lot of confounding factors, so this isn't the smoking gun it appears at first.