Gold hoarding & the Great Depression

If Hayek had know the facts, perhaps he would have located the principle source of the Depression in France, and not so much in America. Based on later, better data, Hayek concluded that the length and depth of the Depression was significantly enlarged by pathological deflationary policies — problems caused in large part by a failure to understand and follow the rules necessary for a non-pathologically functioning gold standard. Unknown to Hayek, it looks like many of these mistakes were happening earlier than Hayek ever imagined. ht Macro Musings.

UPDATE: Read a free PDF draft of Irwin’s paper here.

This entry was posted in Great Depression. Bookmark the permalink.

2 Responses to Gold hoarding & the Great Depression

  1. fundamentalist says:

    Greg, this paper looks interesting but I would have to pay $5 for it. Do you think it’s worth 4%?

  2. Greg Ransom says:

    I’ve linked to a free PDF version in an update above.

Comments are closed.