Daily Economy

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.

What Has Government Done to Our Money? Murray M. Rothbard Copyright 1980 by The Ludwig von Mises Institute

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

“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

“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 generally

“Free-Market Money: A Key to Peace” Steven Horwitz The Freeman, 58 (1), January-February 2008: 13-15.

“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