4 ms·
I’m saying the history of boom and bust is from excessive money printing, and later on from the contraction of the money supply.
by jonkho 5y ago
I’m saying the history of boom and bust is from excessive money printing, and later on from the contraction of the money supply.
- pjc50 5y agoIf you can actually prove this among all the competing explanations you can collect your Sveriges Riksbank Prize in Economic Sciences forthwith. It's not as simple as that. https://en.wikipedia.org/wiki/Business_cycle#Proposed_explanations https://en.wikipedia.org/wiki/Business_cycle#Proposed_explan...
- jonkho 5y agoThat’s appealing to authority. “It is difficult to get a man to understand something when his salary depends upon his not understanding it.”
- sudosysgen 5y agoYou can at least try. My salary doesn't depend on it. So far no one has been able to provide real proof or empirical evidence, only theories from assumptions we know are not accurate.
- imtringued 5y agoBoom and bust is just a product of collective optimism and pessimism. It's purely man made. Of course our money system is designed to appeal to human irrationality so it's part of the problem. A gold standard just makes human nature worse for no real reason. Money is just paper. It holds no intrinsic value. The value exists in the economy of the US. Holding onto USD does not contribute to the economy of the US. So what's wrong with devaluing it? If money were to appreciate you would get value out of nothing. People would start competing for the value out of nothing until there is no real economy anymore.
- pyuser583 5y agoSo do optimistic, high trust societies have longer booms? And pessimistic, low trust societies have longer busts?