[jacoblyles]

On the other hand, resumption of specie payments following the greenback period during the Civil War was accompanied by economic growth (see Friedman's "Monetary History of the United States", one of these days I'll finish that book). There is no essential causal link between gold and depressions; if there were there wouldn't be so many goldbug economists.

[hga]

Agreed, although I'm not at all familiar with that era (not really much before the bus at the end of the 19th century, I too need to read Friedman's tome, right after I finish Human Action and 15 other good economic books :-) but I know this is very complicated.

For the Jackson bust I just cite the specie payment requirement because it was a shock to the system of a bad sort. Jackson intended to pop a bubble but I'm not sure he thought the result would be as bad or as long as it turned out to be.

The only gold "causal link" I (currently) believe in is that it is good to have during a deflation, since it's "The only liquidity that doesn't depend on anyone else's liquidity," to quote an essay in the newsletter of William Rees-Mogg and James Davidson (although it's probably not unique in having that property).