Causes Of Great Depression
When I talk about the gold standard, there's usually someone who gets up and says, "What about the Great Depression?" - like this remark hits every possible argument against it.
Yeah, well, what about her?
The great Depression was no doubt a period when the vast majority of economists had abandoned the view of the classical school, which had emphasized the stable value of money, and had adopted a merchantist view that focused on money that could be manipulated to generate short-term economic benefits.
Unemployment was the main economic problem they needed to address. They were therefore looking for a way to solve it through currency manipulation. It's all kinds of stupid if you use that terminology, isn't it?
I think it's important to recognize that there has been a real political coup. Governments around the world have already fully embraced the currency devaluation by the time the book was published in 1936. Kansa (Keynes) General Theory of Employment, Interest and Money Theory of Employment, Interest and Money) The name is already telling me where Kans gets employment, which is good, because the book is almost impossible to read.
In fact, by 1934, Governments had already been quite exhausted by the " neighbour " devaluation and no longer acted on the front. The United States maintained the value of the dollar in gold at $35 per ounce from 1934 to 1971.
People at that time did not follow the idea that the gold standard caused the Great Depression. They simply wanted to be able to devaluation their currencies, and the gold standard system was an obstacle.
The idea that the gold standard or, in a broader sense, the monetary circumstances of that time had led to the Great Depression appeared in the 1960s. I see that as a major attempt to attack the Federal Reserve. He has not been popular with Liberians since his inception in 1913. So if you don't like Fed, blame him for it. Great Depression♪ I'm not sure there's any other explanation.
In fact, Fed has accomplished his task as " the lender of last resort " , as this phrase was understood at that time. This is evidenced by the low and stable short-term rates of inter-bank finance throughout the period. Fed was created for that purpose and fulfilled his task.