Scott Smith-SWISS PERSPECTIVE
A White Paper on the real causes
of the current economic crisis
• An analysis of inflationary and deflationary effects
• Why the monetarists got it fairly wrong
• How the debate educates us today
A powerful, if rarified, historical debate in 20th century America (among other climes) was whether or
not the Great Depression could have been avoided and, if so, how. Another equally important debate
was whether or not inflation (especially price inflation) existed during the Great Depression in America
or if deflation were the main monetary trend.
The answers to these questions are likely more important than ever, given the current financial crisis
and people’s need to understand the mechanics in order to respond in an appropriate way. This white
paper will attempt to present these grave issues in more detail and then draw appropriate conclusions.
Please bear in mind that the free-market definition of inflation is an increase in the money supply,
whereas the popular definition of inflation has to do with price appreciation. We will endeavor to make
this distinction clearly throughout this paper.
view the entire document here...
http://www.thedailybell.com/Public/Files/Swiss%20Perspective%20-%20Infla...
