Thursday, April 5, 2012

Thought for the Day:Inflation

Inflation is commonly known as the rise in prices. Many economists argue that it is monetary phenomenon, or related to the money supply as it circulates in an economy. For example, many economist state the current high gas prices are related to inflation, thanks to the Federal Reserves expansionist monetary policies. Of course, another school of thought believes that re-establishing the Gold Standard might help control inflation. Here are some videos and links explaining this issue.

How inflation destroyed the Roman Empire:

Nixon's famous speech ending the Bretton-Woods agreement. SN: After this major change, the US experienced stagflation.

FDR Removing the US from the Gold Standard in 1933:

Dr. Milton Friedman discussing the Great Depression:

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