01:220:305 Chapter Notes - Chapter 21: Money Supply, Central Powers, Closed Shop

• School: Rutgers University
• Department: Economic
• Course: 01:220:305
• Professor: Hugh Rockoff

Document Summary

The us entered wwi in april 1917, and only were engaged for 19 months. President woodrow wilson was the sitting president during the wwi years. The us armed forced went from less than 200k to 3 million in 2 years. To pay for war efforts taxes were raised, money supply was expanded, billions of dollars of bonds were sold to the public. Ba(cid:396)o(cid:374)s" (cid:449)ealth, a(cid:374)d (cid:271)e(cid:272)a(cid:373)e a s(cid:373)all (cid:271)ut pe(cid:396)(cid:373)a(cid:374)e(cid:374)t pa(cid:396)t of the fede(cid:396)al (cid:396)e(cid:448)e(cid:374)ue s(cid:455)ste(cid:373) Only justified during wartime, so wwi became the time to implement it also in. = the (cid:396)ate of g(cid:396)o(cid:449)th of the (cid:373)o(cid:374)e(cid:455) suppl(cid:455), e(cid:395)ual to the (cid:396)ate of i(cid:374)flatio(cid:374) so it is the (cid:862)ta(cid:454) (cid:396)ate(cid:863) R = the revenue gained from inflation to government. In march 1918 there was gaining criticism of lagging mobilization of the economy, so. In 1917 real wages: had fallen because money incomes were up less % than consumer prices were up.