Constant, long-term deflation. Great idea! LOL!
That isn't deflation, that is monetary stability.
Deflation is a contraction in the money supply.
[ The issue isn't the quantity of the money, it is purchasing power of the dollar that matters. ]
Unemployed people during the Great Depression didn't have any money, but that money bought more and more. Deflation was very helpful to people with no jobs.
What causes the unemployment is the inflation which leads to a 'bust', and that was the cause of the Great Depression, inflation during the 1920's.
Deflation is a correction of a previous inflation.
With a Gold standard you remove the Government's ability to inflate and cause the 'boom and bust' cycle.
Prices remain stable based on the productivity of the market and money's purchasing power responds to that.
Had the Gov't not intervened extensively during the Hoover and Roosevelt administrations, the Great Depression would have ended quickly as the market adjusted to the correct interest rates.
Keynes is dead!
Monetary stability that will lead to long term, constant deflation in prices. You think that'd be a good thing?
Deflation is a correction of a previous inflation.
You think deflation is good? No big deal?
With a Gold standard you remove the Government's ability to inflate and cause the 'boom and bust' cycle.
Long term deflation, another depression. Great idea.
Keynes is dead!
So is the gold standard!