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Gold Sterilization.pdf

Gold-and-1937-Depression.pdf

🔗 Source: csinvesting.org

📊 Size: 247 KB

👤 Author: Douglas Irwin

⬇️ Downloads: 172

Summary

The Recession of 1937-38 was a severe economic downturn, with real GDP contracting 11% and industrial production plunging 30% between 1937 and 1938. The recession is often blamed on the tightening of fiscal and monetary policies, but existing studies find that changes in fiscal policy were small and higher reserve requirements were not binding on banks. This paper argues that the sterilization of gold inflows during 1937 exerted a powerful contractionary force, preventing a 10% increase in the monetary base and severing the link between gold inflows and monetary expansion. The end of the sterilization program coincided with the onset of a strong economic recovery, suggesting that the Treasury Department's policy tightening was largely responsible for the recession.

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Description

The Recession of 1937-38 was a severe economic downturn, with real GDP contracting 11% and industrial production plunging 30% between 1937 and 1938.

Technical Information

File Format: PDF
File Size: 247 KB
Pages: 25
Language: EN
Author: Douglas Irwin
Total Downloads: 172
Last Updated: 1 week ago

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This PDF document about Gold Sterilization provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Gold Sterilization.