EconPapers    
Economics at your fingertips  
 

Supply‐Side Policies in the Depression: Evidence from France

Jérémie Cohen‐setton, Joshua Hausman and Johannes Wieland ()
Authors registered in the RePEc Author Service: Jérémie Cohen-Setton ()

Journal of Money, Credit and Banking, 2017, vol. 49, issue 2-3, 273-317

Abstract: The effects of supply‐side policies in depressed economies are controversial. We shed light on this debate using evidence from France in the 1930s. In 1936, France departed from the gold standard and implemented mandatory wage increases and hours restrictions. Deflation ended but output stagnated. We present time‐series and cross‐sectional evidence that these supply‐side policies, in particular the 40‐hour law, contributed to French stagflation. These results are inconsistent both with the standard one‐sector New Keynesian model and with a medium scale, multisector model calibrated to match our cross‐sectional estimates. We conclude that the New Keynesian model is a poor guide to the effects of supply‐side shocks in depressed economies.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/jmcb.12380

Related works:
Working Paper: Supply-Side Policies in the Depression: Evidence from France (2017) Downloads
Working Paper: Supply-Side Policies in the Depression: Evidence from France (2016) Downloads
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:wly:jmoncb:v:49:y:2017:i:2-3:p:273-317

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2023-01-24
Handle: RePEc:wly:jmoncb:v:49:y:2017:i:2-3:p:273-317