Economics / History / Warfare

Aggregate Demand Dominance: Bet on Gray (G&SI Part 1)

I’ve hinted in previous posts that I believe the gold and silver standards were responsible for a remarkable amount of economic discord.  There appears to be a well-regarded myth that systems of fixed exchange promote stability.  A quick run through the history of Britain and the United States transitioning from the silver standard to the … Continue reading

Economics / History

Aggregate Demand Dominance: the Unknown History of Price Controls

In a previous posting, I again postulated that World War I, World War II and Korea triggered powerful inflationary forces during their respective decades.  I even have a model to demonstrate: One important caveat: LRAS does not appear.  Aggregate supply rising almost vertically is short-run capacity constraints.  This means the key points are whittled down … Continue reading