Comment by imtringued
4 years ago
The article seems to argue that the capacity to do optimal control was there but the gold standard resulted in hoarding of currency and therefore required deficit spending by the state which was driven by the state. At some point the government could no longer dig out more gold to paper over the deficiencies of a gold standard and was forced to adopt suboptimal control instead. There are common stories about soldiers simply switching over to those with money in the Roman empire.
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