![]() ![]() Moreover, much of this looseness arose from the fact that the controls were compulsive in a deflationary direction and were only permissive in an inflationary direction. Thus, the various parts of the pyramid of money were but loosely related to each other. ![]() Instead, there were a variety of controls of which some could be influenced by bankers, some could be influenced by the government, and some could hardly be influenced by either. The supply of money in a single country was subject to no centralized, responsible control in most countries over recent centuries. We have said that two of the five factors which determined the value of money (and thus the price level of goods) are the supply and the demand for money. Tragedy and Hope: A History of the World in Our Time (1966) There's many more sections on this subject in the book, but I'll just post this section. It's interesting to see it from their perspective. ![]() I will simply post the section of the book that talks about why the government and bankers wanted to get off the gold standard. ![]()
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