Bernanke Feared a Second Great Depression - WSJ.com
July 27, 2009 at 12:59 PM EDT
[Skip to the end] The great depression was the last US gold standard depression. A gold standard is fixed exchange rate policy characterized by a continuous constraint on the supply side of the currency. Interest rates are endogenous, and even the treasury must first borrow before it can deficit spend, and in doing so compete [...]
