The Cause of the Great Depression
The Decision to Resume the Gold Standard on Prewar Terms
This article appeared in the Summer2021 issue of The Independent Review.
The cause of the Great Depression was the post-World War I decision to resume the gold standard on prewar terms, after immense inflation during the war. No collection of smaller shocks, such as bank failures and demand declines was required, as the deflationary effects of full-resumption policies is sufficient to explain the Depression by itself.
Download PDF (19pages)Sandeep Mazumder is professor of economics and department chair in the Department of Economics at Wake Forest University.
John H. Wood is Reynolds Professor in the department of economics at Wake Forest University.
| Other Independent Review articles by John H. Wood | |
| Summer2023 | Money and Empire: Charles P. Kindleberger and the Dollar System |
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