A useful reminder of how the gold standard contributed to the Great Depression by James Hamilton (Econbrowser) here .
The 13 countries that abandoned first their gold parity (1931) performed best, with average growth rate of industrial production turning positive in every year from 1932 on.
A lesson for countries that stick with fixed exchange rate regimes, or common currency areas, or quasi-fixed regimes, in the current Great Recession?
No comments:
Post a Comment