[12869] in Cypherpunks
The American money capture
daemon@ATHENA.MIT.EDU (Eric Hughes)
Mon May 2 14:09:07 1994
Date: Mon, 2 May 94 10:35:54 -0700
From: hughes@ah.com (Eric Hughes)
To: cypherpunks@toad.com
In-Reply-To: Hal's message of Sun, 1 May 1994 10:08:14 -0700 <199405011708.KAA16423@jobe.shell.portal.com>
>(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
Eric
