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> Where did the money to bid those speculative asset prices up come from? There has been bidding of speculative asset prices even when the money supply was fix
by throw0101b 3y ago
> Where did the money to bid those speculative asset prices up come from?
There has been bidding of speculative asset prices even when the money supply was fixed under the Gold Standard, cf 1920s Wall Street.
- tastyfreeze 3y agoMoney supply wasn't fixed after Bretton Woods. The exchange rate of paper to gold was fixed. That didn't stop the Federal Reserve from issuing more certificates than there was gold to back it. The roaring 20s were due to an increase in money supply. The '29 crash came after a contraction of the money supply.