The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool. Because the purchasing public continually searches for the best buy, and regards the offer of "Free" merchandise or service to be a special bargain, alI such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative of the language frequently used in such offers are "Free", "Buy 1-Get 1 Free", "2-for-1 Sale". "50% off with purchase of Two", "1 Sale". etc (related representations that raise many of the same questions include "XX Cents-Off" "Half-Price Sale", "1/2 Off", etc). When the purchaser is told that an article is "Free" to him if another article is purchased, the word "Free" indicates that be is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has the right to believe that the merchant wiII not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

http://www.ftc.gov/bcp/guides/free.htm (wich adaptations)

The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool. Because the purchasing public continually searches for the best buy, and regards the offer of "Free" merchandise or service to be a special bargain, alI such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative of the language frequently used in such offers are "Free", "Buy 1-Get 1 Free", "2-for-1 Sale". "50% off with purchase of Two", "1 Sale". etc (related representations that raise many of the same questions include "XX Cents-Off" "Half-Price Sale", "1/2 Off", etc). When the purchaser is told that an article is "Free" to him if another article is purchased, the word "Free" indicates that be is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has the right to believe that the merchant wiII not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

http://www.ftc.gov/bcp/guides/free.htm (wich adaptations)

Text

In the early days, before most countries had central banks, countries operated under the gold standard, which entailed its own set of rules. The world supply of money was determined by the usable goId supply. New gold discoveries would lead to monetary expansions in recipient countries, which would then experience rises in prices and output. Contractions in the supply of usable gold would require contractions in prices and output. lf a country on its own over-inflated demand, say by fiscal policy, its demand would spilI over to foreigners and its gold would flow out. While the gold standard was in this sense self-regulating, it was not a perfect system. Monetary policy was not set consciously in terms of the economic needs of the country, but by the world gold market. The world gold stock would fluctuate in line with international discoveries, while the stock in particular countries reflected trade flows. There was no automatic provision for money or liquidity to grow in line with the normal production leveIs in the economy. John Taylor (1998) has shown that this regime was responsible for large fluctuations in real output, much less stability in real output than has been achieved in the post gold standard era. In the gold standard period of 1890-1905, for example, the US economy suffered five major recessions.

Remarks by governor E. M. Gramlich on 24th Annual conference of the eastern economic association. New York 2/27/98 (with adaptations).

The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool. Because the purchasing public continually searches for the best buy, and regards the offer of "Free" merchandise or service to be a special bargain, alI such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative of the language frequently used in such offers are "Free", "Buy 1-Get 1 Free", "2-for-1 Sale". "50% off with purchase of Two", "1 Sale". etc (related representations that raise many of the same questions include "XX Cents-Off" "Half-Price Sale", "1/2 Off", etc). When the purchaser is told that an article is "Free" to him if another article is purchased, the word "Free" indicates that be is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has the right to believe that the merchant wiII not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

http://www.ftc.gov/bcp/guides/free.htm (wich adaptations)

Text

In the early days, before most countries had central banks, countries operated under the gold standard, which entailed its own set of rules. The world supply of money was determined by the usable goId supply. New gold discoveries would lead to monetary expansions in recipient countries, which would then experience rises in prices and output. Contractions in the supply of usable gold would require contractions in prices and output. lf a country on its own over-inflated demand, say by fiscal policy, its demand would spilI over to foreigners and its gold would flow out. While the gold standard was in this sense self-regulating, it was not a perfect system. Monetary policy was not set consciously in terms of the economic needs of the country, but by the world gold market. The world gold stock would fluctuate in line with international discoveries, while the stock in particular countries reflected trade flows. There was no automatic provision for money or liquidity to grow in line with the normal production leveIs in the economy. John Taylor (1998) has shown that this regime was responsible for large fluctuations in real output, much less stability in real output than has been achieved in the post gold standard era. In the gold standard period of 1890-1905, for example, the US economy suffered five major recessions.

Remarks by governor E. M. Gramlich on 24th Annual conference of the eastern economic association. New York 2/27/98 (with adaptations).

Text

In the early days, before most countries had central banks, countries operated under the gold standard, which entailed its own set of rules. The world supply of money was determined by the usable goId supply. New gold discoveries would lead to monetary expansions in recipient countries, which would then experience rises in prices and output. Contractions in the supply of usable gold would require contractions in prices and output. lf a country on its own over-inflated demand, say by fiscal policy, its demand would spilI over to foreigners and its gold would flow out. While the gold standard was in this sense self-regulating, it was not a perfect system. Monetary policy was not set consciously in terms of the economic needs of the country, but by the world gold market. The world gold stock would fluctuate in line with international discoveries, while the stock in particular countries reflected trade flows. There was no automatic provision for money or liquidity to grow in line with the normal production leveIs in the economy. John Taylor (1998) has shown that this regime was responsible for large fluctuations in real output, much less stability in real output than has been achieved in the post gold standard era. In the gold standard period of 1890-1905, for example, the US economy suffered five major recessions.

Remarks by governor E. M. Gramlich on 24th Annual conference of the eastern economic association. New York 2/27/98 (with adaptations).

Text

In the early days, before most countries had central banks, countries operated under the gold standard, which entailed its own set of rules. The world supply of money was determined by the usable goId supply. New gold discoveries would lead to monetary expansions in recipient countries, which would then experience rises in prices and output. Contractions in the supply of usable gold would require contractions in prices and output. lf a country on its own over-inflated demand, say by fiscal policy, its demand would spilI over to foreigners and its gold would flow out. While the gold standard was in this sense self-regulating, it was not a perfect system. Monetary policy was not set consciously in terms of the economic needs of the country, but by the world gold market. The world gold stock would fluctuate in line with international discoveries, while the stock in particular countries reflected trade flows. There was no automatic provision for money or liquidity to grow in line with the normal production leveIs in the economy. John Taylor (1998) has shown that this regime was responsible for large fluctuations in real output, much less stability in real output than has been achieved in the post gold standard era. In the gold standard period of 1890-1905, for example, the US economy suffered five major recessions.

Remarks by governor E. M. Gramlich on 24th Annual conference of the eastern economic association. New York 2/27/98 (with adaptations).

Text

In the early days, before most countries had central banks, countries operated under the gold standard, which entailed its own set of rules. The world supply of money was determined by the usable goId supply. New gold discoveries would lead to monetary expansions in recipient countries, which would then experience rises in prices and output. Contractions in the supply of usable gold would require contractions in prices and output. lf a country on its own over-inflated demand, say by fiscal policy, its demand would spilI over to foreigners and its gold would flow out. While the gold standard was in this sense self-regulating, it was not a perfect system. Monetary policy was not set consciously in terms of the economic needs of the country, but by the world gold market. The world gold stock would fluctuate in line with international discoveries, while the stock in particular countries reflected trade flows. There was no automatic provision for money or liquidity to grow in line with the normal production leveIs in the economy. John Taylor (1998) has shown that this regime was responsible for large fluctuations in real output, much less stability in real output than has been achieved in the post gold standard era. In the gold standard period of 1890-1905, for example, the US economy suffered five major recessions.

Remarks by governor E. M. Gramlich on 24th Annual conference of the eastern economic association. New York 2/27/98 (with adaptations).

The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool. Because the purchasing public continually searches for the best buy, and regards the offer of "Free" merchandise or service to be a special bargain, alI such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative of the language frequently used in such offers are "Free", "Buy 1-Get 1 Free", "2-for-1 Sale". "50% off with purchase of Two", "1 Sale". etc (related representations that raise many of the same questions include "XX Cents-Off" "Half-Price Sale", "1/2 Off", etc). When the purchaser is told that an article is "Free" to him if another article is purchased, the word "Free" indicates that be is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has the right to believe that the merchant wiII not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

http://www.ftc.gov/bcp/guides/free.htm (wich adaptations)

The offer of "Free" merchandise or service is a promotional device frequently used to attract customers. Providing such merchandise or service with the purchase of some other article or service has often been found to be a useful and valuable marketing tool. Because the purchasing public continually searches for the best buy, and regards the offer of "Free" merchandise or service to be a special bargain, alI such offers must be made with extreme care so as to avoid any possibility that consumers will be misled or deceived. Representative of the language frequently used in such offers are "Free", "Buy 1-Get 1 Free", "2-for-1 Sale". "50% off with purchase of Two", "1 Sale". etc (related representations that raise many of the same questions include "XX Cents-Off" "Half-Price Sale", "1/2 Off", etc). When the purchaser is told that an article is "Free" to him if another article is purchased, the word "Free" indicates that be is paying nothing for that article and no more than the regular price for the other. Thus, a purchaser has the right to believe that the merchant wiII not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

http://www.ftc.gov/bcp/guides/free.htm (wich adaptations)