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To: Ilaine who wrote (406)	2/16/2002 1:56:20 AM
From: Don Lloyd	Read Replies (2) \| Respond to of 443

CB - Here is the link to the Nobel lecture by Robert Mundell on the occasion of his receiving the Nobel prize in 1999 - it's almost an hour long, but I recommend it very highly. Why? Well, for one reason, Mundell says that von Mises thought that going back on the gold standard in the 1920's would be deflationary, as in fact, it turned out to be. Thank you, I just finished listening to it. I now have more respect for Mundell. As far as going back on the gold standard being deflationary, it's not quite that simple. As you can tell if you listen to the lecture with it in mind, it isn't going back on the gold standard per se that is deflationary, but going back at an historical price of gold after a period of inflation. If the new gold price is not such as to keep the money supply essentially constant, for the existing gold reserves, you naturally get the same deflation as you would any time the money supply is reduced. In the last couple of weeks, new information has become available that explains a lot about deflation which hasn't been generally known, i.e. that there are actually 4 different types of price deflation, all with different causes and some with different effects. I'll post a reference when I get a chance. Regards, Don