Re Framing the Delinkings of Currency From Gold

• In Event: 473 - Section on Political Economy of the World-System Roundtables (one-hour)
  In Refereed Roundtable: Table 04. Markets and Economics

Abstract

This somewhat rambling paper suggests that positive consequences have followed the delinkings from gold of US currency, allowing for the reversal of price deflationary trends. But in the 1970s, it appears, too much currency easing occurred which resulted in an excessive reversal of a threatened deflationary trend. That is, a contracting supply push inflation generated a slow down, which the Fed attempted to reverse by it is hypothesized, buying Treasury issues, while raising interest rates in an attempt to reduce the inflation. The result was stagflation and a markedly reduced belief in Keynes theory.

Authors

• David (Jed) D. Schwartz, Independent Scholar

• Andreas Daniel Fogg, Independent Scholar