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Apparently gold itself suffered quite the inflation in that timeframe, from 8097 tonnes in 1913 to 16469 tonnes in 1930. US reserves went from 2293 to 6358 ton
by the_why_of_y 5y ago
Apparently gold itself suffered quite the inflation in that timeframe, from 8097 tonnes in 1913 to 16469 tonnes in 1930.
US reserves went from 2293 to 6358 tonnes.
https://www.swcs.com.au/goldreserves.htm#Table1 https://www.swcs.com.au/goldreserves.htm#Table1
Scroll down to table 8, sum of the newly mined gold is ~8800 tonnes from 1915-1929.
- WalterBright 5y agoGood try! But inflation is not the same thing as an increase in the supply. Inflation is the excess of an increase in supply vs the value in the economy it represents. I.e. you have to discount the increase in supply by the growth in the GDP. For more evidence, consider the gold bonds. The US government sold gold bonds and dollar bonds. The gold bonds offered a lower interest rate than the dollar bonds, because the buyers trusted the gold more than they trusted the fiat money. The buyers were right. But the buyers were wrong about trusting the government. FDR repudiated the gold bond contracts, paying the holders off in inflated dollars. They basically stole the money from the bond holders. This wouldn't have happened if gold had inflated along with the dollar.
- the_why_of_y 5y agoSorry for the sloppy language. The question I have is, what is the value of gold relative to other commodities (preferably the same ones that are used to measure inflation of the dollar) in 1914 vs. in 1929. Unfortunately I don't have an idea where to get the data to answer this question. I found that M2 in 1914 was 24.62, up to 66.61 in 1929. This is quite similar to the increase in gold reserves, not much of a surprise. Second graph here: https://www.longtermtrends.net/m2-money-supply-vs-inflation/ https://www.longtermtrends.net/m2-money-supply-vs-inflation/