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<p>[QUOTE=&quot;WingedLiberty, post: 1249616, member: 26030&quot;]I am not an expert in the historical aspects of inflation of deflation.&nbsp; However I wonder if in general there was less inflation and deflation when our dollar was hard -- that is, when the dollar was tied to gold and silver.&nbsp; Prior to 1965, you could always take your paper dollar bills and exchange them for silver coins (about 1 ounce of silver for $1).&nbsp; Prior to 1933, you could take your paper dollars and exchange them for either silver or gold coins (about 1 ounce of gold for $20).&nbsp; I think that made the value of the dollar more stable.&nbsp; </p><p><br /></p><p>It&#039;s interesting but I do recall reading about how there was more inflation during the civil war. Which led to people hoarding change (silver and gold coins) ... the shortage of coins is what led to the U.S. printing Fractional Currency in the 1860&#039;s.&nbsp; I think for a while many people thought the Union (the North) was going to lose the war and people lost confidence in paper dollars.[/QUOTE]</p><p><br /></p>

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