On: BadEconomics: Putting $400M of Bitcoin on your com...

[manarth]

> In the era of the gold standard, there were no great depressions

Apart from this one? https://en.wikipedia.org/wiki/Great_Depression

> "The gold standard was the primary transmission mechanism of the Great Depression"

[notahacker → manarth]

Before that Great Depression, the term 'Great Depression' referred to the 23 years of economic crisis which started in 1873 and ended only when gold was found in the Yukon...

Tying economic growth to the availability of gold was a disaster.

[splintercell → manarth]

Is your understanding of this only from that line or do you have a more deeper take on it.

Back in 1920s, govt could 'adjust' the gold standard by changing the rate whenever they wanted.

Wanna double the money supply by 60%? Change the gold standard peg from 1.505g to 0.888g of gold.

When you didn't do that, you got a very short lived depression of 1920-1921 [1].

When you did, like FDR did in 1933, you got a long, extended deperession.

1. https://en.wikipedia.org/wiki/Depression_of_1920%E2%80%93192...

[nickles → splintercell]

> When you did, like FDR did in 1933, you got a long, extended deperession.

But the Great Depression began in late 1929. FDR's decision in 1933 retroactively extended the depression by 3 years?

[splintercell → nickles]

Great depression didn't end till 1939.