me: > > The implicit point of view is that if the value of money is dependable > > then leaving saving to the private investors and investment to > > business will work well. The magnitude of the Great Depression of the > > 1930s would destroy Keynes's faith in the proposition that stable > > internal prices implied a well-functioning macroeconomy and small > > business cycles. [perhaps because US prices were stable before 1929? > > -- JD]
Shane: > and farm prices were depressed and falling Right. farm prices fell after the end of the war (WW1, that is) and didn't recover significantly. But for the CPI, the situation was a classic case of what conservative economists and businesscritters have always wanted, a relatively stable price level with mild deflation after 1926: 1921 17.9 1922 16.8 1923 17.1 1924 17.1 1925 17.5 1926 17.7 1927 17.4 1928 17.2 1929 17.2 (source: http://research.stlouisfed.org/fred2/data/CPIAUCNS.txt ) The food CPI (http://research.stlouisfed.org/fred2/data/CPIUFDNS.txt) did rise from about 90% to about 95% of the overall CPI during the 1920s, but because the CPI measures retail prices (restaurants, etc.) that's not what farmers received. It hardly compensated for the post-war slump in ag prices. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
