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Week Eight Online Question - Essay Example

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Increasing rates of unemployment during this period led to great discontent among the masses of America, who believed that the policies of the Bank of the…
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Download file to see previous pages This was in line with the theories of David Ricardo, the English political economist, who argued in favor of hard currency that would enable the economy to escape the cycles of booms and depressions. This, Andrew Jackson and his supporters felt, would be a lasting solution to the problems that America faced at a time when it was expanding rapidly and monetary policies were a widely debated issue. Jackson’s stance on this matter is considered t be crucial in his re-election to the post of the president of the United States of America.
hands of people who lived outside America and those sections of the American society which belonged to the upper strata (Andrew). His efforts according to the speeches that he delivered regarding the future of the Bank of the United States were directed towards the establishment of a nation that would ensure the equality of the people who stayed in it. This, Jackson felt, could be achieved only through a return from credit to hard currency, something that David Ricardo had suggested. His views were appropriated by Jackson and his political friends in order to establish an economic order that they felt would not allow the re-establishment of situations like that which occurred during the panic of 1819, when the banks, since they had lent money that had become less valuable due to inflation, experienced a shortage. Ricardian currency theories required that the banks regulate the monetary pressures of inflation and deflation through regulating the flow of money into the economy. Jackson’s views were thus, not completely against banks, but called for a reassessment of the roles that banks played in the American economy that would prevent a repeat of the events of 1819. A system was put in place according to which only the amount of money the equivalent of which was present in the bank in ...Download file to see next pagesRead More
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