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The first two example as best I can tell are of a decreasing money supply due to export of currency to other places. That is fundamentally different than having
by marcinzm 4y ago
The first two example as best I can tell are of a decreasing money supply due to export of currency to other places. That is fundamentally different than having a fixed supply of money.
>See also the Great Drepession for another problem with a fixed money supply:
Sure but the system worked for the whole 1800s with basically no inflation during that time. It may not be ideal but "works for over a century" is pretty good to me.
- ChrisLomont 4y agoThe system did not work for the 1800s. Inflation and deflation boom and busts in the 1800s were so severe and destructive that it led to central banking to avoid those problems. Here's where you can start looking at the data https://en.m.wikipedia.org/wiki/List_of_recessions_in_the_United_States https://en.m.wikipedia.org/wiki/List_of_recessions_in_the_Un...
- marcinzm 4y agoYet society survived and thrived which is the definition of a working system to me.
- ChrisLomont 4y agoYet the people were vastly worse off than under the current system. Which would you prefer to live in? Here's some of what it was like to live then for comparison https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4577070/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4577070/