1920-21 and the Great Depression
Put differently: the 1920-21 episode was, in fact, a severe, though not particularly long, recession. Allowing the money supply to fall isn’t painless. Allowing the money supply to fall in an environment of severe downward wage rigidity is VERY “not painless.” The 1920-21 episode doesn’t demonstrate that deflation is harmless. It DOES demonstrate that if you have deflation, it will be less bad if you have nominal wages that are flexible downward. That recession is the best example of why Hoover’s wage policies were such a mistake.
READ MOREWhat Has Government Done to Our Money?
What Has Government Done to Our Money? Murray M. Rothbard Copyright 1980 by The Ludwig von Mises Institute
READ MOREThe Gold Standard as a “Good Housekeeping Seal of Approval
In this article we argue that during the period from 1870 to 1914 adherence to the gold standard was a signal of financial rectitude, a “good housekeeping seal of approval,” that facilitated access by peripheral countries to capital from the core count …
READ MORESound Money Essay Contest
Sound Money Essay Contest * The Deadline for The Essay Contest has been extended! Submit your essays to [email protected] on or before January 15th, 2010. A Monetary System for the Free Society The Atlas Economic Research Foundatio …
READ MORE“To Prevent Bubbles, Restrain the Fed”
“The U.S. cannot afford to have another lost decade. Or to see the dreams of another generation of Americans who had been told to take responsibility for their financial health by investing in the stock market dashed by failed monetary and fiscal polic …
READ MORE“Why Private Banks and Not Central Banks Should Issue Currency, Especially in Less Developed Countries”
“Nationalization of currency is largely taken for granted today, but it shouldn’t be. Adam Smith praised private currency for the benefits it had brought to his native Scotland. Most economists would agree that a legally enforced government monopoly is …
READ MORE“Free-Market Money: A Key to Peace”
“Free-Market Money: A Key to Peace” Steven Horwitz The Freeman, 58 (1), January-February 2008: 13-15.
READ MORE“Money: How it works and why”
“Money: How it works and why” Steven Horwitz part of the “Key Concepts in Free Markets” series, Fraser Forum, Vancouver, BC: Fraser Institute, April 2009, pp. 16-17. http://www.fraseramerica.org/commerce.web/product_files/KeyConcepts_Money_US.pdf
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