The definitive economic history of the Great Depression. It contains some
The FED continued to increase the money supply and expand credit as much as ever
during Hoover's term.
But the uncontrollable forces in the money supply deflated
the quantity of money so much that, overall, the money supply decreased.
This was the first time the federal government had a deliberately interventionist
strategy to combat a depression.
The FED inflation was motivated not only by bad economic ideas, but because England
had great influence on the New York FED and got them to persuade the entire FED to
inflate to rescue the pound.
Prices did not rise during the 1920s. Although the money supply was greatly
increased, prices remained stable, because production increased.
Prices would have gone down.
Keynes approve of the FED policies.
Year Read: 1973
Libertarian Essays by Roy Halliday
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