IDEAS home Printed from https://ideas.repec.org/a/oup/oxford/v26y2010i3p510-539.html
   My bibliography  Save this article

'Blood and treasure': exiting the Great Depression and lessons for today

Author

Listed:
  • Kris James Mitchener
  • Joseph Mason

Abstract

Although avoiding the policy mistakes of the 1930s helped define how policy-makers responded to the 2007--8 financial crisis and ensuing recession, policy applications to the recovery phase are less well understood. We draw on the experience of the US in the 1930s to shed light on exit strategies--movements back to institutional conditions associated with steady-state growth, including stable inflation and broadly non-interventionist credit- and capital-market policies. We describe how policy responses to the deflation and banking crises of the 1930s coloured the exit policy debate after the Great Depression. We show that a full exit from the Great Depression, defined as the point at which interventionist credit- and capital-market policies and institutions were wound down did not occur in the 1930s. It took until the 1950s for this to occur and for the Federal Reserve to regain its independence and return unfettered to its longer-run objectives. Copyright 2010, Oxford University Press.

Suggested Citation

  • Kris James Mitchener & Joseph Mason, 2010. "'Blood and treasure': exiting the Great Depression and lessons for today," Oxford Review of Economic Policy, Oxford University Press, vol. 26(3), pages 510-539, Autumn.
  • Handle: RePEc:oup:oxford:v:26:y:2010:i:3:p:510-539
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oxrep/grq025
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Finegold, David, 1999. "Creating Self-Sustaining, High-Skill Ecosystems," Oxford Review of Economic Policy, Oxford University Press, pages 60-81.
    2. Francesca Froy & Sylvain Giguère, 2010. "Putting in Place Jobs that Last: A Guide to Rebuilding Quality Employment at Local Level," OECD Local Economic and Employment Development (LEED) Working Papers 2010/13, OECD Publishing.
    3. Francesca Froy & Sylvain Giguère & Michela Meghnagi, 2012. "Skills for Competitiveness: A Synthesis Report," OECD Local Economic and Employment Development (LEED) Working Papers 2012/9, OECD Publishing.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, pages 1126-1152.
    5. Barberis, Nicholas & Maxim Boycko & Andrei Shleifer & Natalia Tsukanova, 1996. "How Does Privatization Work? Evidence from the Russian Shops," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 764-790, August.
    6. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-185, March.
    7. Francesca Froy & Lucy Pyne, 2011. "Ensuring Labour Market Success for Ethnic Minority and Immigrant Youth," OECD Local Economic and Employment Development (LEED) Working Papers 2011/9, OECD Publishing.
    8. Timothy J. Bartik, 2011. "Investing in Kids: Early Childhood Programs and Local Economic Development," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number iik.
    9. Sergio Destefanis, 2012. "Skills for Competitiveness: Country Report for Italy," OECD Local Economic and Employment Development (LEED) Working Papers 2012/4, OECD Publishing.
    10. Finegold, David & Soskice, David, 1988. "The Failure of Training in Britain: Analysis and Prescription," Oxford Review of Economic Policy, Oxford University Press, pages 21-53.
    11. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, pages 1126-1152.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," American Economic Review, American Economic Association, pages 466-472.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," American Economic Review, American Economic Association, pages 466-472.
    3. Gabriel P. Mathy & Matthew Jaremski, 2016. "How Was the Quantitative Easing Program of the 1930s Unwound?," Working Papers 2016-01, American University, Department of Economics.
    4. Nicholas Crafts & Peter Fearon, 2010. "Lessons from the 1930s Great Depression," Oxford Review of Economic Policy, Oxford University Press, vol. 26(3), pages 285-317, Autumn.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:26:y:2010:i:3:p:510-539. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: https://academic.oup.com/oxrep .

    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.

    We have no references for this item. You can help adding them by using 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.