In the 1920s, the Fed was flooding the markets with cheap credit. In most cases, this would obviously inflate prices. However, this didn’t happen during this decade due to huge increases in efficiency, correct? In other
words, prices didn’t rise because of increases in productivity.And if the Fed of the 1920s wasn’t inflating the money supply, prices would have dropped even more than they did. Am I understanding this correctly?
Thanks for your help!
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