Book Nook Message Board - Msg: 15919558

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To: Ilaine who wrote (319)	6/9/2001 4:52:10 PM
From: Don Lloyd	Read Replies (1) of 443

CB - ...The big decline in commodities prices was also multi-factorial, due to overproduction, and worldwide deflation caused by national policies involving the gold standard. People on the thread who defend the gold standard claim that the deflation was a natural result of adherence. ... Why and when was there overproduction? Was it pre-crash due to credit expansion? Was it post-crash due to domestic demand collapse? Was it due to the collapse of international trade due to politics? Was it due to unemployment associated with policies that maintained nominal wage levels and boosted real wages? Regards, Don

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