The great depression in Irving Fisher's Work

Giovanni Pavanelli
Additional contact information
Giovanni Pavanelli: University of Turin - Dipartimento di Scienze Economiche e Finanziarie “G. Prato”

History of Economic Ideas, 2003, vol. 11, issue 1, 151-167

Abstract: This paper oVers a critical re-examination of Fisher’s views on the origin of the Great Depression, his “debt-deXation theory” and the policy measures he advocated. On the eve of the stock market crash in October 1929 Fisher predicted that the share prices were not overvalued and that their increase was due to new proWt opportunities created by technological innovation and sharp rises in productivity. As the Depression worsened, however, he became convinced that new theoretical explanations were needed and presented a new model (debt-deXation theory) based on the interaction of real and monetary aspects. In 1932 he also became an active supporter of a “stamped money plan” aimed at counteracting widespread hoarding. During the New Deal he supported expansionary monetary measures and promoted a revision of the banking system aimed at abolishing fractional reserves (“100% money”). In the meantime he opposed Roosevelt’s labour and industrial policies and, more generally, any intervention by the government on economic activity with the exception of the control on money supply.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.libraweb.net/articoli.php?chiave=200306101&rivista=61
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hid:journl:v:11:y:2003:1:8:p:151-167

Access Statistics for this article

History of Economic Ideas is currently edited by Riccardo Faucci, Nicola Giocoli, Roberto Marchionatti

More articles in History of Economic Ideas from Fabrizio Serra Editore, Pisa - Roma
Bibliographic data for series maintained by Mario Aldo Cedrini ().