Re:America's 1% Has Taken $50T From the Bottom 90%
by tylerhou on Thursday February 11, 2021 @06:22PM
(#26108872)
I didn’t say the gold standard caused the Depression; I said it exacerbated it. This is well supported by your link and other historical sources.
The point is, without control of the money supply, a government cannot prevent deflationary spirals. Since Fed can print money temporarily, that makes recessions much milder.
You're right, in a sense, that money printing is inflationary. But when money printing happens, it's to avoid a far greater evil: severe deflation.
The point is, without control of the money supply, a government cannot prevent deflationary spirals. Since Fed can print money temporarily, that makes recessions much milder.
You're right, in a sense, that money printing is inflationary. But when money printing happens, it's to avoid a far greater evil: severe deflation.
https://www.history.com/news/how-did-the-gold-standard-contr...