God, I wonder if the Barry Eichengreen tag will ever activate.
Good thing we did that. I bet gold lost all of its purchasing power.
".. balance of trade greatly improved."
It's all smiles until some asshole realises that now they aren't tied to gold, they can fund any amount of wars, make ludicrous promises of social welfare, confiscate capital willy-nilly and in the end bankrupt *EVERYONE*.
Economics is so weird. As a scientific dicipline it's about where physics was when Newton came up with his laws of motion. That is to say they have some equations, and if you squint and fudge the data a bit they can almost predict the behavior of some special cases in the real world. Yet it's driving policy.
It definitely can't be compared to other sciences like physics because unlike physics economics has to deal with understanding and trying to explain human behavior, hence why it's called a social science.
Early models assumed perfect flow of information between suppliers and consumers but of course that's not the case in the real world. Newer models attempt to account for this unequal flow of information by adding to previous models of Keynes, Friedman, and others.
"There's no danger of the [stock] exchange falling too far. There's no danger of a serious rise in the cost of living."
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