The American money capture

(Today, with our experiences of inflation in the 1970's and 1980's, it is hard for us to appreciate the problems with deflation. But I think deflation was much worse.

The Great Depression was pretty clearly caused by deflation in the money supply. To quote Milton Friedman: "All told, from July 1929 to March 1933, the money stock in the United States fell by one-third [...]" Capitalism and Freedom, p. 50 Eric