Export-Led Decay: The Trade Channel in the Gold Standard Era

Bernardo Candia and Mathieu Pedemonte

Journal of the European Economic Association, 2025, vol. 23, issue 3, 1173-1201

Abstract: Flexible exchange rates can facilitate price adjustments that buffer macroeconomic shocks. We test this hypothesis using adjustments to the gold standard during the Great Depression. Using novel monthly data on city-level economic activity, sectoral employment, and export data, we show that American exporting cities were significantly affected by changes in bilateral exchange rates. We calibrate a general equilibrium model to obtain aggregate effects from cross-sectional estimates. We show that the trade channel deepened the Great Depression and was a key driver of the economic recovery in 1933.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/jeea/jvae051 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Export-Led Decay: The Trade Channel in the Gold Standard Era (2021)
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:oup:jeurec:v:23:y:2025:i:3:p:1173-1201.

Access Statistics for this article

Journal of the European Economic Association is currently edited by Romain Wacziarg

More articles in Journal of the European Economic Association from European Economic Association
Bibliographic data for series maintained by Oxford University Press ().