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It's funny the US paid it debt to GDP down from WWII until the 80s then it started going up again. I wonder what happened in the 80s to make it change?
by sharemywin 3y ago
It's funny the US paid it debt to GDP down from WWII until the 80s then it started going up again. I wonder what happened in the 80s to make it change?
- speps 3y agoI remember something I read that linked it to the Gold Standard and the US deciding to stop using it, making all other currencies free floating. I'm not sure if it's the only reason but definitely an interesting topic: https://en.wikipedia.org/wiki/Nixon_shock https://en.wikipedia.org/wiki/Nixon_shock
- seanmcdirmid 3y agoIt is impossible to exercise modern monetary policy while still beholden to fiat metals. The last major economy to leave the gold standard was Switzerland in 1999, and at any rate, most of the countries only started using the gold standard in the 19th century, so it wasn’t around for that long.
- deprecative 3y agoHmm. That sure seems to line up with Reaganism. I'm sure they've got nothing to do with each other.