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If I were preparing a "New Deal crib sheet," I would start with the following lessons: MONETARY POLICY IS KEY As Milton Friedman and Anna Jacobson Schwartz argued in a classic book, "A Monetary History of the United States," the single biggest cause of the Great Depression was that the Federal Reserve let the money supply fall by one-third, causing deflation.
Despite both inequality of after-tax incomes and labor supply fall compared to the benchmark economy (from 0.243 to 0.14, and from 0.33 to 0.22 respectively), the equilibrium annual growth rate falls (from 1.92 to 1.46 %).
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Supply falls well short.
Its newly mined supply fell by 3%.
Global supply fell by 11% in 2012 to 203.6 tonnes, the lowest since 2002.
Demand soared, supply fell and two years later the government cut exports to Chile.
Britain has been gripped by growing worries about its future power supplies, with supply falling and prices rising.
America's broad-money growth slowed to 8.8% in the year to November; its narrow-money supply fell by 1.7%.
So if the overall supply falls (because America has suppressed cultivation in friendly areas), the price shoots up.
In the year to January, France's broad-money supply fell by 3.2%; Austria's grew by 2.8%.
The annual growth rate of M3, a measure of the broad money supply, fell to a sluggish 1.8%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com