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No it wasn't that simple as the article suggest. By the time there was a huge inflation because states had their own state banks that allowed them to basically
by ulzeraj 5y ago
No it wasn't that simple as the article suggest. By the time there was a huge inflation because states had their own state banks that allowed them to basically print money by lending to themselves. There was also a huge wave of privatization and government expense cuts.
- kqr 5y agoHaving their own state banks and printing money to lend to themselves is how virtually every sovereign currency works today, so I don't find that particular aspect very convincing as the cause of inflation.
- ulzeraj 5y agoI've didn't meant a federal bank but a regional bank. It is like California having their own state controlled bank called "Development Bank of California" where they lend themselves as much dollars as they want regardless of the FED policy.