Report The Falling US Dollar in Economics Posted January 28, 2008 What I think is just incredibly rich is that those who advocate central banking and this type of monetary policy always claim more stability and point to the little booms and busts in the late 1800's as examples of why the gold standard didn't work. All the while ignoring the laundry lists of bust since. Free market banking has hardly created any of the instability that centralized banking has! Absolutely true. As an example, no recession in the entire history of the United States probably including the colonial era was as severe as the Great Depression. Nor was there ever an episode of inflation as drawn out and destructive as the 1970s inflation. Both of these events arose because of central banking. Prior to 1913, even the imperfectly established gold standard that did exist protected the economy from dislocations as severe as these.