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Lessons from the 1930s' Great Depression

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  • Crafts, Nicholas; Fearon, Peter

    (University of Warwick; University of Leicester)

Abstract

This paper provides a survey of the Great Depression comprising both a narrative account and a detailed review of the empirical evidence focusing especially on the experience of the United States. We examine the reasons for and flawed resolution of the American banking crisis as well as the conduct of fiscal and monetary policy. We also consider the pivotal role of the gold standard in the international transmission of the slump and leaving gold as a route to recovery. Policy lessons from the Great Depression for today are discussed as are some implications for macroeconomics.

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Paper provided by Competitive Advantage in the Global Economy (CAGE) in its series CAGE Online Working Paper Series with number 23.

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Date of creation: 2010
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Handle: RePEc:cge:warwcg:23

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Cited by:
  1. Nicholas Oulton, 2013. "Medium and Long Run Prospects for UK Growth in the Aftermath of the Financial Crisis," CEP Occasional Papers 37, Centre for Economic Performance, LSE.
  2. Klein, Alexander & Leunig, Tim, 2013. "Gibrat’s Law and the British Industrial Revolution," CAGE Online Working Paper Series 146, Competitive Advantage in the Global Economy (CAGE).
  3. Alex Klein & Keisuke Otsu, 2013. "Efficiency, Distortions and Factor Utilization during the Interwar Period," Studies in Economics 1317, Department of Economics, University of Kent.

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