It's been a long time since governments have controlled the money supply.Wallace wrote:I think the answer lies in the expansion of the money supply. The Great Depression of the 1930s was a deflationary trap, but the dollar was hobbled by the gold standard at the time, so there was little leeway for the government to expand the money supply. Now that currencies can float independently of the POG, governments have that option, which they've been rather freely exercising over the last few years.
Independent central banks, perhaps, but never the government.