Role Of The International Gold Standard In Propagating The Great Depression
AbstractI do not claim in this paper that the international gold standard was a principal cause of the Great Depression. Instead, I explore the events that allowed the world to slip deeper into depression despite the gold standard. The volatility of international short-term capital flows surely contributed greatly to the Depression. I argue that this volatility was exacerbated-rather than ameliorated-by the international gold standard. The reason is that despite governments' legal assurances that they are committed to a gold standard, speculators never perceive the terms of gold parity as immutable. This statement holds with increasing force when one observes the precarious status of government debts and international finance during the 1920s. This reality renders a gold standard vulnerable to precisely the type of volatility in international capital markets that made the 1931 downturn more severe. Copyright 1988 Western Economic Association International.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 6 (1988)
Issue (Month): 2 (04)
Contact details of provider:
Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1074-3529
More information through EDIRC
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Return to the gold standard
by James Hamilton in Econbrowser on 2012-09-01 09:31:48
- Gold conspiracies
by JP Koning in Moneyness on 2012-09-20 14:02:00
- J. Peter Ferderer, 1999. "Credibility of the Interwar Gold Standard, Uncertainty, and the Great Depression," Macroeconomics 9907002, EconWPA.
- Barry Eichengreen, 1990.
"Relaxing the External Constraint: Europe in the 1930s,"
NBER Working Papers
3410, National Bureau of Economic Research, Inc.
- Eichengreen, Barry, 1990. "Relaxing the External Constraint: Europe in the 1930s," CEPR Discussion Papers 452, C.E.P.R. Discussion Papers.
- Barry Eichengreen., 1990. "Relaxing the External Constraint: Europe in the 1930s," Economics Working Papers 90-147, University of California at Berkeley.
- Eichengreen, Barry, 1990. "Relaxing the External Constraint: europe in the 1930s," Department of Economics, Working Paper Series qt45x5d198, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Selgin, George & Lastrapes, William D. & White, Lawrence H., 2012. "Has the Fed been a failure?," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 569-596.
- Bernanke, Ben S, 1995.
"The Macroeconomics of the Great Depression: A Comparative Approach,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 27(1), pages 1-28, February.
- Ben S. Bernanke, 1994. "The Macroeconomics of the Great Depression: A Comparative Approach," NBER Working Papers 4814, National Bureau of Economic Research, Inc.
- Maurice Obstfeld & Alan M. Taylor, 1998.
"The Great Depression as a Watershed: International Capital Mobility over the Long Run,"
in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 353-402
National Bureau of Economic Research, Inc.
- Maurice Obstfeld & Alan M. Taylor, 1999. "The Great Depression as a Watershed: International Capital Mobility over the Long Run," NBER Working Papers 5960, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice & Taylor, Alan M, 1997. "The Great Depression as a Watershed: International Capital Mobility over the Long Run," CEPR Discussion Papers 1633, C.E.P.R. Discussion Papers.
- Richardson Gary & Van Horn Patrick, 2011.
"Fetters of Debt, Deposit, or Gold during the Great Depression? The International Propagation of the Banking Crisis of 1931,"
Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook,
De Gruyter, vol. 52(2), pages 29-54, December.
- Gary Richardson & Patrick Van Horn, 2007. "Fetters of Debt, Deposit, or Gold during the Great Depression? The International Propagation of the Banking Crisis of 1931," NBER Working Papers 12983, National Bureau of Economic Research, Inc.
- Mathy, Gabriel P. & Meissner, Christopher M., 2011. "Business cycle co-movement: Evidence from the Great Depression," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 362-372.
- Gabriel Rodriguez & Nicholas Rowe, 2002.
"Why U.S. Money does not Cause U.S. Output, but does Cause Hong Kong Output,"
0201E, University of Ottawa, Department of Economics.
- Rodriguez, Gabriel & Rowe, Nicholas, 2007. "Why U.S. money does not cause U.S. output, but does cause Hong Kong output," Journal of International Money and Finance, Elsevier, vol. 26(7), pages 1174-1186, November.
- Gabriel Rodriguez & Nicholas Rowe, 1999. "Why U.S. Money does not Cause U.S. Output, but does Cause Hong Kong Output," Carleton Economic Papers 01-07, Carleton University, Department of Economics, revised Nov 2007.
- Reinhart, Carmen & Reinhart, Vincent, 2010.
"When the North Last Headed South: Revisiting the 1930s,"
CEPR Discussion Papers
7835, C.E.P.R. Discussion Papers.
- Carmen M. Reinhart & Vincent R. Reinhart, 2009. "When the North Last Headed South: Revisiting the 1930s," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 40(2 (Fall)), pages 251-276.
- Reinhart, Carmen & Reinhart, Vincent, 2009. "When the North Last Headed South: Revisiting the 1930s," MPRA Paper 22612, University Library of Munich, Germany.
- James D. Hamilton, 2005.
"What's real about the business cycle?,"
Federal Reserve Bank of St. Louis, issue Jul, pages 435-452.
- Ben Bernanke & Harold James, 1990. "The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison," NBER Working Papers 3488, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.