How an Economy Grows and Why It Crashes

by Peter D. Schiff

United States faced two choices: force down the general price structure to bring it in line with the 1932 price of gold, or raise gold to bring it in line with 1968 prices. In other words, to adjust for 40 years of Keynesian inflation, America now had to either deflate prices or devalue the dollar. Although Irwin argued that deflation would be the most responsible course, since it would restore the lost purchasing power of the dollar, he understood that economists erroneously view falling prices as a catastrophe and that governments have a natural preference for inflation (as will be explored in this book). Given these biases, he argued that authorities could at least acknowledge prior debasement and officially devalue the dollar against