E. Harding now we go from “the monetary deflationary shock so obviously caused the Great Depression that it’s hard to deny it” to “it didn’t matter”? That’s a lot of goalpost moving.
My whole OP is showing that a deflationary shock because of gold can’t be the primary cause of the GD, because such shocks happened several times during the prior decades. It would be like blaming the Russian plane crash on gravity.
Here, the 1920-21 episode had far worse deflation in the opening years than any period in the GD. And yet it was over in 2 years; the decade was “the Roaring Twenties.”
Look, all I’m doing here is the same trick that Sumner uses to show that the 1929 stock market crash can’t be the explanation. He points to the 1987 stock market crash, says it’s bigger and no Depression, so therefore that couldn’t be the reason. [Note that the link I give is not the most succinct place where Sumner has made that argument, but he has indeed made it.]
So I’m doing the same thing with the gold standard.
24 Nov 2015