The Choice: Great Depression or Great Inflation?

Parker, Randall
October 2009
Reason;Oct2009, Vol. 41 Issue 5, p27
The article focuses on the actions of the U.S. Federal Reserve Board (Fed) to assess the threat of future inflation. It outlines the move of the Fed to the threat of inflation in 1930 such as letting money supply fall by 33% and increasing its money supply by 15% in 2007. It notes on the two ways to tackle the inflation such as the need to a new policy on bank reserves paying interest, and the need to drain monetary base and prevent creation of money by allowing Fed to issue its own debt.


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