This is a graph based on data from the World Gold Council. Now, I am not saying that there are not other factors at work here (do we know whether we have discovered all the gold fields yet?). But it seems to me that there is a correlation between the exit from the Gold Standard and inflation. I am assuming that the Misian definition that inflation is the growth in money supply plus its reduction in quality, applies here. In other words the temptation is for Governments running monopoly fiat money to inflate away their self induced problems at our expense.
Just a thought. Happy to be argued with.
1 comment:
No argument, fact.
Post a Comment