[12874] in Cypherpunks
RE: The American money capture
daemon@ATHENA.MIT.EDU (Blanc Weber)
Mon May 2 15:32:52 1994
From: Blanc Weber <blancw@microsoft.com>
To: cypherpunks@toad.com
Date: Mon, 2 May 94 12:19:34 PDT
From: Hal Finney & Eric Hughes
>(Today, with our experiences of inflation in the 1970's and 1980's, it is hard
>for us to appreciate the problems with deflation. But I think deflation was
>much worse.
The Great Depression was pretty clearly caused by deflation in the
money supply. To quote Milton Friedman:
"All told, from July 1929 to March 1933, the money stock in
the United States fell by one-third [...]"
Capitalism and Freedom, p. 50
....................................................
Would it be too complex and lengthy an explanation to provide to say
how the money supply is decided in the first place; that is, how an
appropriate amount of it is calculated initially? Is this in reference
to the gold or other backing which gives each dollar its monetary value?
Blanc
