The Gold Standard and the Great Depression: a Dynamic General Equilibrium Model

Luca Pensieroso and Romain Restout ()
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Romain Restout: Université de Lorraine, Université de Strasbourg, CNRS, BETA

No 2018016, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Was the Gold Standard a major determinant of the onset and the protracted character of the the Great Depression of the 1930s in the United States and Worldwide? In this paper, we model the ‘Gold-Standard hypothesis’ in a dynamic general equilibrium framework. We show that encompassing the international and monetary dimensions of the Great Depression is important to understand what happened in the 1930s, especially outside the United States. Contrary to what is often maintained in the literature, our results suggest that the vague of successive nominal exchange rate devaluations coupled with the monetary policy implemented in the United States did not act as a relief. On the contrary, they made the Depression worse.

Keywords: Gold Standard; Great Depression; Dynamic General Equilibrium (search for similar items in EconPapers)
JEL-codes: E13 N01 N10 (search for similar items in EconPapers)
Date: 2018-12-03
New Economics Papers: this item is included in nep-dge, nep-his, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: The Gold Standard and the Great Depression: a Dynamic General Equilibrium Model (2019)
Working Paper: The Gold Standard and the Great Depression: a Dynamic General Equilibrium Model (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2018016

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