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wp090220 asked in Social ScienceEconomics · 1 decade ago

why did the federal reserve bank print up( during the years 1932-1929) money at a 62% inflation rate?

The federal reserve was created by an associate of Meyer Rothschild with the enactment of Federal Reserve Act of 1913..

Update:

4 Alby- if there was no inflation in the 20's, why did the stock market crash in 1929

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  • 1 decade ago
    Favorite Answer

    I think if you recheck the facts, you will find:

    A) that the money supply contracted in those years

    B) That the economy experienced deflation, not inflation

    C) That Meyer Rothschild died in 1812, over 100 years before the FRS.

    http://en.wikipedia.org/wiki/Mayer_Amschel_Rothsch...

  • Anonymous
    1 decade ago

    I don't know about them doing this between '29-'32, but I'm pretty sure they did it in 1933 and beyond.

    But that is what Central Banks do. They create and destroy money in an attempt to stabilize the economy. As for inflation, it didn't really exist in the America in the 30s'. America was in a Deflation during that time. Money was scarce. It wasn't until after World War II that inflation started to creep up.

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