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The Role of Consumption in Interwar Fluctuations

In: British Economic Fluctuations, 1790–1939

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  • H. W. Richardson

Abstract

I have chosen to comment on economic fluctuations in Britain between the wars not by a sweeping survey of the period as a whole but by reprinting a more detailed investigation of the behaviour of consumption in the depression and recovery of the 1930s. A virtue of this approach is that it throws light on one of the most puzzling of the many paradoxes in the interwar economy, namely, the paradox of unemployment rising from 1.54. to 2.85 million in the depression and real consumption spending remaining unaffected. Careful explanation of paradoxes of this kind is necessary if the economic character of the interwar period is to be comprehended.

Suggested Citation

  • H. W. Richardson, 1972. "The Role of Consumption in Interwar Fluctuations," Palgrave Macmillan Books, in: Derek H. Aldcroft & Peter Fearon (ed.), British Economic Fluctuations, 1790–1939, chapter 4, pages 161-187, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-15463-0_5
    DOI: 10.1007/978-1-349-15463-0_5
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