Inflation After Executive Order 6102 (FDR Leaving GoldStandard)

Upvote:3

I discussed this exact action in a fair bit of detail in my answer to Gold Confiscation Act of 1933 . You may want to go check that out.

To bring that answer full circle, taking the USA off the Gold Standard wasn't the only economic system change the US government made at that time. The Gold Confiscation Act had the effect of propping up the money supply. If you are a Monetarist, you might want to argue that this was the one action that turned the economy around. On the other hand, the government also went on a spending spree in an attempt to jump-start the economy. If you incline towards Keynesian Economics, you might prefer to tout that as the action that turned things around.

If you are instead a Software Engineer accustomed to debugging programs (such as myself), you perhaps would instead point out that if you change multiple variables at once, there is really no way of knowing which one fixed the "bug".

More post

Search Posts

Related post