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It goes both ways. In the early days of colonization of the Americas, Spain suffered inflation due to an influx of silver. The point is, the amount of money ne
by atq2119 4y ago
It goes both ways. In the early days of colonization of the Americas, Spain suffered inflation due to an influx of silver.
The point is, the amount of money needs to correlate with the size of the economy.
There's no single physical good that naturally has the required correlation, so using physical goods as the basis of money is foolish.
- spiralx 4y ago> In the early days of colonization of the Americas, Spain suffered inflation due to an influx of silver. Ironically that did end the Great Bullion Famine, a decades long period where not enough bullion being mined lead to Europe-wide deflation.