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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: nihil who wrote (26442)	7/29/2000 8:29:08 AM
From: Neocon	Respond to of 769670

Well, maybe the EB story is wrong. I cannot say. But one of the points is that silver was coined, it was not until the end of the period that the gold standard was established. It was merely not coined in unlimited quantities. Friedman pegged monetary growth at between 2 and 4 percent. The idea was not that it create inflation, but that it prevent deflation by ensuring that monetary growth follow the typical growth of GDP in a mature economy. Yes, paper currency is typically used in wartime, just as are bonds. The reason is the intolerance of the population for the level of taxation that would be necessary to prosecute a war. Therefore, the government borrows, and inflates the currency, in order to increase its spending power........