The Hope That Flows From History, by Christina Romer, Commentary, NY Times: After the grim economic developments of the last few weeks, it’s easy to lose hope. Could the Great Recession of 2008 drag on for years, just as the Great Depression did in the 1930s? Adding to the despair is the oft-repeated notion that it took World War II to end the economic nightmare of the ’30s: If a global war was needed to return the economy to full employment then, what is going to save us today?NYT
Her claim is importation of gold caused monetary expansion, thus the Monetary Illusion saves us. It wasn't monetary illusion, Gold, in fact, had intrinsic value. The reason the USA did well was that Europe was being overrun by German fascists and this was the last safe place to produce.
Right now the same thing is happening, Europe has been overrun by numbskull Keynesians and they are bankrupt.
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