Quarterly Journal of Austrian Economics
Author:
Douglas French
Online Publish Date:
price of tulips only served as a manifestation of the end result of a government policy that expanded the quantity of money and thus fostered an environment for (Dash 1999, p. 111). But what made this episode unique was that the government policy did not expand the supply of money through fractional reserve banking which is through clipping, sweating or by decree, the Dutch provided a sound money policy which called for money to be backed one hundred per cent by specie. This