Re: investment and unemployment

[Warren Mosler <mosler@xxxxxxxx>]

>

>
>
> snip:
> >Deflation has been the norm in peacetime throughout most economic >history
> for the obvious reason that men and women are always improving >their
> production skills. A three hundred year graph of inflation shows >that the
> saecular trend of deflation of prices accelerated after 1801, >and only
> turned to inflation when the use of high interest rates to >control
> inflation was introduced. In Britain the graph changes >direction sharply
> after November 1951 when the first rise in Bank Rate >for 20 years took
> place. Interest rate policy subsequently ensured the >relentless rise in
> inflation.

There was usually some kind of 'gold standard' for those 300 years?
The deflation observed was therefore a drop in the relative value of gold?

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