Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site tilt.FUN Path: utzoo!watmath!clyde!burl!ulysses!allegra!princeton!tilt!chenr From: chenr@tilt.FUN (Ray Chen) Newsgroups: net.politics.theory Subject: Re: The gold standard. Message-ID: <237@tilt.FUN> Date: Wed, 13-Feb-85 02:00:49 EST Article-I.D.: tilt.237 Posted: Wed Feb 13 02:00:49 1985 Date-Received: Wed, 13-Feb-85 07:43:35 EST References: <613@ukma.UUCP> <> <1600@bmcg.UUCP> Organization: Princeton University EECS Dept Lines: 15 > --Bill Price uucp: {decvax!ucbvax philabs}!sdcsvax!bmcg!bprice > [I have not done an exhaustive > study of the following conjecture, but what I have done supports it to 1.000: > all inflation (overexpansion of the money supply) has been caused by > government.] I'll say you haven't done an exhaustive study. Have you ever heard of supply shocks? They cause inflation quite nicely by making necessary good(s) more scarce, hence more valuable, and thus lowering the purchasing power of the money in circulation thereby debasing the currency. All without the government doing a thing. Ray Chen princeton!tilt!chenr