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Tuesday, August 4, 2020 | History

2 edition of Gold sterilization and the Recession of 1937-38 found in the catalog.

Gold sterilization and the Recession of 1937-38

Douglas A. Irwin

Gold sterilization and the Recession of 1937-38

by Douglas A. Irwin

  • 166 Want to read
  • 40 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English


Edition Notes

StatementDouglas A. Irwin
SeriesNBER working paper series -- working paper 17595, Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17595.
ContributionsNational Bureau of Economic Research
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL25180338M
LC Control Number2011657494

Douglas A. Irwin, Dartmouth College, “Gold Sterilization and the Recession of ” Oct. 5 David Donaldson, MIT, “Welfare Gains from Economic Integration: Theory and Evidence from U.S. Agriculture, ” (with Arnaud Costinot).   Stock prices fell, and interest rates rose. After the Treasury reversed its policy on sterilization in , the economy recovered. Exactly what government policies caused the slump remains unclear. Perhaps all of them. It almost certainly was some mix. With hindsight, the recession seems to have been preventable.

Marcus Nunes discusses Clive Crook's analysis of Paul Krugman, and then adds the following: All this comes out clearly in Krugman´s May 6 column for the NYT, but I want to be specific in my comment, so I´ll concentrate on one of his favorite arguments, and show it´s misleadingly wrong. Krugman writes: F.D.R. cut back sharply in , plunging America into recession; the. I wish he would have spent more time on the Treasury’s gold sterilization policy of which Douglas Irwin mentions as the leading cause of the collapse. Nevertheless there are many fascinating nuggets in this book such as the role of the Young Plan bonds issued by Germany had on the financial markets of Cited by: 7.

  The steep recession is usually presented as a failure of the New Deal, which otherwise would have more successfully resolved the crisis and the debt over-hang, such that it was only the outbreak of WW2, which unleashed the government coffers and . We use cookies to offer you a better experience, personalize content, tailor advertising, provide social media features, and better understand the use of our services.


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Gold sterilization and the Recession of 1937-38 by Douglas A. Irwin Download PDF EPUB FB2

Gold Sterilization and the Recession of Douglas A. Irwin. NBER Working Paper No. Issued in NovemberRevised in November NBER Program(s):Development of the American Economy, Monetary Economics The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a weak recovery.

Get this from a library. Gold sterilization and the Recession of [Douglas A Irwin; National Bureau of Economic Research.] -- The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a weak recovery.

Yet our understanding of this severe downturn is. Gold Sterilization and the Recession of Douglas A. Irwin. Dartmouth College and NBER. This Draft: September 9, Abstract: The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a weak recovery.

Yet existing studies of the recession find thatFile Size: KB. Douglas A. Irwin, “Gold Sterilization and the Recession of ,” National Bureau of Economic Research and Dartmouth College, September 9, ; Michael V.

Namaroto, “Recession of ,” American Business, March 9, Author: History Bot. Download Citation | Gold Sterilization and the Recession of | The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a.

The recession of – was an economic downturn that occurred during the Great Depression in the United States. By the spring ofproduction, profits, and wages had regained their early levels. Unemployment remained high, but it was slightly lower than the 25% rate seen in   The severity of the Recession of was not due to contractionary fiscal policy or higher reserve requirements.

By contrast, the policy tightening associated with gold sterilisation was not modest – it did not simply reduce the growth of the monetary base by a few percentage points, it stopped its growth altogether. Recession of –38 May –June Lasting from May until Junethis recession was America’s third-worst downturn of the 20th century.

With real GDP dropping 10 percent and unemployment hitting 20 percent, it was less severe than the recessions of and Downloadable. The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a weak recovery. Yet our understanding of this severe downturn is incomplete: existing studies find that changes in fiscal policy were small in comparison to the magnitude of the downturn and that higher reserve requirements were not binding on banks.

Gold Sterilization and the Recession of Introduction The Recession of was America’s second most severe economic downturn in the twentieth century, the first being the Great Depression of Real GDP contracted 11 percent and industrial production plunged 30 percent between the second quarter of and the.

•Irwin, Douglas A (), “Gold Sterilization and Recession of ”, Working paper. •Romer, Christina D (), “What Ended the Great Depression?”, Journal of Economic History, Gold sterilization and the recession of – Douglas A. Irwin Financial History Review / Volume 19 / Issue 03 / Decemberpp ­ File Size: KB.

Lessons from the recession By Robert J When the gold arrived here, it had to be sold to the government for dollars. The sterilization created a “pronounced monetary shock.

It meanders into the usual channels of pointless Monetarism, with some equally pointless math, but it does describe the basic event much as we have already.

The overall conclusion of the paper is that the “gold sterilization” was a Big Deal, a major cause of the Recession of Gold sterilization and the Recession of "The Recession of is often cited as illustrating the dangers of withdrawing fiscal and monetary stimulus too early in a weak recovery.

Yet our understanding of this severe downturn is incomplete. This article shows that there were timing, geographic, and sectoral anomalies in the /38 recession, none of which are easily explained by aggregate shocks.

I argue that an auto industry supply shock contributed both to the recession's anomalies and to its by: 1. This article shows that there were timing, geographic, and sectoral anomalies in the /38 recession, none of which are easily explained by aggregate shocks.

I argue that an auto industry supply shock contributed both to the recession's anomalies and to its by: 1. Irwin, Douglas A (), “Gold Sterilization and Recession of ”, Working paper.

Romer, Christina D (), “What Ended the Great Depression?”, Journal of Economic History, BOOK REVIEWS The author then turns to the Federal Reserve Board's actions in raising margin requirements on securities in Februaryraising reserve require-ments by 50 per cent in August and by another one-third in a two-step action in the first half of.

Doug Irwin’s explanation that it was actually the US Treasury that caused the trouble through gold sterilization rather than the Fed through higher reserve requirements in my view has a lot of merit and I strongly recommend to everybody to read Doug’s paper on Gold Sterilization and the Recession in which he presents quite strong.

The United States Gold Reserve Act of Janu required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the also prohibited the Treasury and financial institutions from redeeming dollars for gold, established the Exchange Stabilization Fund under control of the Treasury to control Enacted by: the 73rd United States Congress.Notes.

The case against the Federal Reserve's tight monetary policy was defended by Milton Friedman and Anna Schwartz in A Monetary History of the United States, pp.

–Also worth reading: Roose, Kenneth D., "Federal Reserve Policy and the Recession of –," The Review of Economics and Statistics, Vol.

32, No. 2: May ; p. Douglas A. Irwin, "Gold Sterilization and the Recession of ," NBER Working PapersNational Bureau of Economic Research, Inc. Kinda Hachem & Jing Cynthia Wu, "Inflation Announcements and Social Dynamics," Journal of Money, Credit and Banking, Blackwell Publishing, vol.

49(8), pagesDecember.