3 ms·
We had inflation before the 1970s.
by jedberg 3y ago
We had inflation before the 1970s.
- WalterBright 3y agoThe divergence happened in 1914, starting the very next year. That divergence reached 2:1 around 1929, and (as always happens when currency is inflated while being pegged to something else) a massive correction occurred (the banks collapsed). The response by FDR was to make it illegal to trade dollars for gold. Then for decades there was the absurd fiction that the dollar was pegged to gold, but of course nobody was allowed to make such a transaction. This continued until the 1970s when that ersatz pegging was repealed.