Monday, March 30, 2009

Gold Standard and the Great Depression

Paul Krugman looks at the the role played by the gold standard during the great depression. He looks at the discount rates of various countries in the 20's and 30's and argues: "attempts to defend the gold standard led to perverse monetary policies at what was arguably a crucial moment." His more formal musings (via his blog) are here.

Brad DeLong from UCLA posts the following chart:

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