David says:
>Jim Devine writes:
>---------------------
>I agree. If we had the gold standard, that would guarantee deflation, so
>that we'd have waves of bankruptcy and a banking crisis. This would
>encourage the one-sided class struggle to become two-sided. Of course, our
>friends in South Africa and Russia would benefit, as would the gold-bug
>contingent.
>
>Seriously, how does the gold standard allow for the elasticity of credit
>that capitalism needs?
>----------------------
>
>Why does a gold standard guarantee deflation? What exactly do you mean by
>that?
From PEN-pal Brad's syllabus:
***** Week 11: The Gold Standard and the Great Depression (November 5)
Barry Eichengreen, Golden Fetters: The Gold Standard and the Great
Depression (New York: Oxford University Press, 1992), pp. 3-28.
Christina D. Romer, "The Great Crash and the Onset of the Great
Depression," Quarterly Journal of Economics 105: 3 (August 1990),
pages 597-624..
James Hamilton, "Monetary Factors in the Great Depression," Journal
of Monetary Economics 19 (1987), pp. 145-69.
Peter Temin, "The Transmission of the Great Depression," Journal of
Economic Perspectives 7:2 (Spring 1993), pp. 87-102.
J.M. Keynes, Essays in Persuasion (New York: Norton, 1963), pp.
118-134 and 168-81.
<http://www.j-bradford-delong.net/Teaching_Folder/Econ_210a_Fall97/Econ210a_Fall97.html>
*****
Yoshie
