If one takes a casual look at the gold standard era, there are some perplexing observations. For example, when countries would go to war, they would suspend convertibility of paper money into gold. Then, after the war was over, these countries would return to gold at the previous parity. The result would often be a period of significant deflation and recession.
Why Didn't They Just Give Up on Gold?
Why Didn't They Just Give Up on Gold?
Why Didn't They Just Give Up on Gold?
If one takes a casual look at the gold standard era, there are some perplexing observations. For example, when countries would go to war, they would suspend convertibility of paper money into gold. Then, after the war was over, these countries would return to gold at the previous parity. The result would often be a period of significant deflation and recession.