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They believed that increasing the money supply would

cause inflation. Inflation, in turn, would result in rising prices. Higher

prices for crops would help farmers pay back the money that they had

borrowed to improve their farms.

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Q: Why did some people in the 1890s think that going off the gold standard would cause inflation?
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Related questions

What did the gold standard cause?

Gold standard caused governments not to print money freely, so limiting inflation to zero

Inflation is most harmful to?

Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.

Will incorrect tire inflation cause tire wear?

Yes. Low pressure will cause edge wear. Over inflation will cause center wear.

What will happen if everyone expects inflation to occur?

If people expect inflation, they are more inclined to spend than save money which will lose its value. A surge in demand will cause an an increase in prices (because demand exceeds supply) and voila! Inflation.

What do monetarians believe regarding inflation?

the main cause of inflation is the growth of money supply

Can inflation change a business cycle?

yes because less employment cause inflation

How is inflation and employment levels related?

Inflation causes people to save on everything. This makes commerce to sell less. Selling less causes unemployment. Unemployment and low consumption cause recession. No inflation implies on high consumption which must be controlled as well, but is much better than inflation and recession.

Why did people think going off gold standard would cause inflation?

Without a universal valuable currency, paper money is just that. Paper. There needs to be an accepted form of backing, world wide or there would be constant, unresolvable disputes as to the value of a countries' money.

How consumer spending may cause inflation to rise?

Inflation occurs when people aren't spending money, thus meaning if a consumer is spending money the prices will generally be lower, also if there is a high demand for that product

The main cause of inflation is?

The rate of production of goods

What was the purpose of bland-Allison act?

cause inflation

Is it true middlemen cause price inflation?

Depends who the middleman is