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To: Fireone

Going to the gold standard was one of the biggest factors that led to the Great Depression. It would tighten the money supply too quickly and too much.


7 posted on 04/01/2009 12:02:57 PM PDT by DonaldC
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To: DonaldC

“Money supply” is meaningless, unless you want to confiscate priate savings by inflation to finance massive government spending. Nobody else ive ever read says the gold standard caused the depression, can you refer us to an author, etc?

It seems that if that was the case, then the depression should have been fixed in a jiffy when FDR took us off the gold standard and started following Keynes.


12 posted on 04/01/2009 12:11:45 PM PDT by DesertRhino (Dogs earn the title of "man's best friend", Muslims hate dogs,,add that up.)
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To: DonaldC
It would tighten the money supply too quickly and too much.

Under a gold standard, prices would drop to account for a static money supply. It's exactly how the economy functioned in the late 19th century.

17 posted on 04/01/2009 12:24:19 PM PDT by BfloGuy (It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect . . .)
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