History Never Exactly Repeats Itself

In the late 1960s, the US had a very expansionary monetary policy. To keep their currencies from appreciating, the world’s major central banks had to keep buying dollars, effectively expanding their own money supply at the same fast rate. Being inflation-shy, however, they hated doing so, and soon stopped. That brought about the end of the Bretton-Woods Age.

In the early and mid 2000s, the US had a very expansionary monetary policy. To keep their currencies from appreciating, the world’s major central banks had to keep buying dollars, effectively expanding their own money supply at the same fast rate. Being deflation-shy, however, they loved doing so, and continued…

Kash