Hacker News new | past | comments | ask | show | jobs | submit login

Inflation during the gold standard came from:

1. Debasement of the currency (reducing the gold content of coins)

2. Gold mining

3. Stealing gold from abroad

That's why the Spanish Empire suffered hyperinflation after Cortez, because so much gold was brought back to Spain from the conquered South American tribes.

Yes, money velocity has an impact too but the main thing which can affect that is government intervention (like by printing lots of money and giving it to people who then save it - low velocity - and later start spending it - higher velocity).




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: