England UK

Ron Peterson wrote:
> Zerge wrote:
>
> > Ron wrote:
> > > That hasn't always been the case. When currencies were on the gold
> > > standard, wasn't inflation almost non existent.
>
> > This is inaccurate. When currencies where based on gold and/or silver,
> > inflation would happen every time new gold and silver deposits where
> > discovered. Also, every time the economy grew faster than the gold
> > reserves, there was the danger of deflation, which is even more
> > dangerous than inflation.
>
> OK, when Spain first started exploiting the New World, the supply of
> gold became large and the price of things increased relative to gold.

Also during the California gold rush and Australian gold rush in the
19th century.
Inflation also happened when a new technique for extracting gold from
ore was invented in the late 19th century.
On top of that you have to consider that silver has been the most used
currency standard; the use of gold was much more limited. Every time a
silver mine was discovered somewhere, there was inflation.
But again, it is DEFLATION, not inflation, the real threat of using
metal based currencies.