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The greatest feature of a centralized currency is the ability for the governing body to step in and become a lender of last resort when once a century crises hi
by dkrich 4y ago
The greatest feature of a centralized currency is the ability for the governing body to step in and become a lender of last resort when once a century crises hit to stave off a depression that could take decades to repair. The trouble is that once a century is becoming once a year now.
- jkhdigital 4y agoWe don’t have a lot of good history on this, but there’s basically only one instance of such a deep and lasting depression and it occurred after central banking was established, not before.
- JumpCrisscross 4y ago> there’s basically only one instance of such a deep and lasting depression Because we didn’t measure for it. (18th-century GDP is post hoc estimated.) The 19th century, during the free banking era, featured multiple 30%+ drawdowns in business activity, greater than the Great Depression, albeit against a smaller baseline [1]. [1] 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...