Why the Gold Standard is Bad During a Depression

Discussion in 'Economy' started by Toro, Feb 14, 2009.

  1. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,698
    Thanks Received:
    11,042
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,016
    In 1931, the Fed raised the discount rate from 1.5% to 3.5% during the teeth of the Depression because gold was flowing out of the economy. Raising interest rates during a contraction is the exact opposite of what should be done, and helped prolong the Great Depression.

    Worthwhile Canadian Initiative: At least we don't have the Gold Standard to worry about
     
  2. eots
    Offline

    eots no fly list

    Joined:
    Jan 6, 2007
    Messages:
    28,995
    Thanks Received:
    2,034
    Trophy Points:
    205
    Location:
    IN TH HEARTS AND MINDS OF FREE MEN
    Ratings:
    +2,606
    [ame=http://www.youtube.com/watch?v=k94VWPjUQSM]YouTube - MSBNC - Ron Paul the fed caused the bubble[/ame]
     

Share This Page