> Massive government spending, funded by new money, caused inflation.
How is US government spending causing 8% inflation in Germany?
It's almost like this is a global phenomenon caused by supply shocks and price gouging of essential commodities.
How is US government spending causing 8% inflation in Germany?
It's almost like this is a global phenomenon caused by supply shocks and price gouging of essential commodities.
>Massive government spending, funded by new money, caused inflation.
Someday, people will understand that central banks issue less than 8 percent of the circulating money, and that government debt is just another way of financing retirement pension funds.
So only in the most narrow sense is it even possibly true that "the US did not have inflation when it did not have fiat money": if you ignore the times when convertibility was suspended, it becomes a slightly more accurate statement, but still not true as it ignores inflation soon after the founding, large deflationary periods in the early and late 1800s, and subsequent inflationary periods prior to WW I. So you have to ignore convertibility suspension and the inflation and deflation in order to argue that there was no inflation or deflation.
The one iron-clad law of "non-fiat" currencies: eventually they will become fiat currencies.
This amply proves my point.
The inflation was a net zero from 1800 to 1914.