Great Apprehensions, Prolonged Depression: Gauti Eggertsson on the 1930s
Gauti Eggertsson uses a dynamic stochastic general equilibrium model in arguing that the period 1933 to 1937 represented recovery from the Great Depression, by virtue of regime change between the Hoover and Roosevelt administrations. He claims that the Hoover administration was defined by adherence to three â€œpolicy dogmas,â€ and that Roosevelt shifted expectations for the better by making credible commitments rejecting those dogmas. Eggertssonâ€™s argument is wrong on several counts. He misrepresents Hooverâ€™s economic policies, he mischaracterizes Roosevelt as â€œdogma-freeâ€ and committed to a clear alternative plan for recovery, and he misreads the economic consequences of Rooseveltâ€™s policies. Eggertssonâ€™s problems begin with his notion of â€œrecovery,â€ wherein the economyâ€™s progression from critical condition to prolonged infirmity is trumpeted as â€œrecovery.â€ Eggertssonâ€™s article is entitled â€œGreat Expectations;â€ I have titled this piece â€œGreat Apprehensionsâ€ because the Hoover-Roosevelt period needs to be seen a whole, in which the statist trend of policy and rhetoric created great uncertainty about the rules under which enterprise and investment would proceed. Moreover, Eggertssonâ€™s narrative cutoff at 1937 is misleading and opportunistic, as the ensuing years are all part of the same prolonged apprehension and under-performance.
Volume (Year): 6 (2009)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: |
Phone: (703) 993-1151
Web page: http://econjwatch.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:6:y:2009:i:3:p:313-336. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)The email address of this maintainer does not seem to be valid anymore. Please ask Jason Briggeman to update the entry or send us the correct address
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.