Economics / History

Aggregate Demand Dominance: The Deflation Ratchet and the Great Depression

The Utter Failure and Stupidity of the Gold and Silver Standards: Part 3 In a previous posting, I described the tendency for the gold standard to be “mean reverting” as the primary enforcement mechanism of the fixed-exchange system that prevailed for over two centuries prior to the Great Depression. This tendency is easily recognizable in … Continue reading