How the U.S. Treasury Avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

21 Pages Posted: 23 Oct 2015

See all articles by Michael Hudson

Michael Hudson

University of Missouri at Kansas City - Department of Economics ; Bard College - The Levy Economics Institute

Date Written: October 21, 2015

Abstract

The Eurozone today is going into the same deflationary situation that the U.S. did under Jackson’s destruction of the Second Bank, and the post-Civil War budget surpluses that deflated the economy. But whereas the Fed’s creation was designed to inflate the U.S. economy, Europe’s European Central Bank is designed to deflate it — in the interest of commercial banks in both cases.

Keywords: Money Supply, Central Banking, Fed, Treasury, Economic History

JEL Classification: E5, G1, G2, N1, N2, N4

Suggested Citation

Hudson, Michael, How the U.S. Treasury Avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street (October 21, 2015). Available at SSRN: https://ssrn.com/abstract=2677282 or http://dx.doi.org/10.2139/ssrn.2677282

Michael Hudson (Contact Author)

University of Missouri at Kansas City - Department of Economics ( email )

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States

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