Was the Great Deflation of 1929-33 Inevitable?

• Autorzy: Marek A. Dąbrowski
• Języki publikacji: EN

Abstrakty

EN

This paper re-examines the recent and provocative hypothesis that the Great Deflation of 1929-33 was an inevitable consequence of the return to the gold convertibility of currencies at pre-war parities. An alternative hypothesis, that the relative prices of gold tended to gravitate to one another, is put forward in this paper. This hypothesis is derived from the conventional gold standard model and Cassel's well known insights on purchasing power of currency. Empirical evidence lends support to the alternative hypothesis: even though the relative price of gold returned to its pre-war level by 1931, the adjustment process was mainly driven by differences between countries rather than the absolute deviation from the pre-war level. (original abstract)

Słowa kluczowe

EN

Exchange rates; Purchasing power; Gold; Deflation; Economic crisis

PL

Kurs walutowy; Siła nabywcza; Złoto; Deflacja; Kryzys gospodarczy

• Czasopismo: Journal of International Studies
• Rocznik: 2014
• Tom: 7
• Numer: nr 2
• Strony: 46--56

Twórcy

autor

Marek A. Dąbrowski

• Cracow University of Economics, Poland

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Identyfikatory

DOI

10.14254/2071-8330.2014/7-2/4