Quote:
Originally Posted by joshgirls
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"The gold standard limited the flexibility of central banks' monetary policy by limiting their ability to expand the money supply, and thus their ability to lower interest rates."
Its the manipulation of the money supply by the central bank that causes the boom. It's the further manipulation of the money supply by the central bank and the intervention of the government in the economy that cause the boom to get bigger. The bigger the boom, the bigger the bust.