Quote:
Originally posted by wig@Jun 9 2003, 08:06 AM
Economic cycles have become more pronounced because we took away the stabalizing mechanism when we switched to a fiat currency.
What used to be small ripples of overgrowth and recession are now swings to the extremes.
During prosperity this is great, but it is equally devastating during the downturn.
The ebb and flow is still there, it is just with more amplitude and perhaps elongated cycles.
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I see the opposite. We've had nothing like the bust of the 1930s or those of the late 1800s and nowhere near the frequency of the pre-depression recessions. A post WW II recession is a 2-4% drop in GDP and a 10% unemployment rate. Not bad at all compared to the recessions of old.
Of course, the gold standard itself is arbitrary (yellow metal) and had it's own problems.
06-09-2003
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