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By T. Balderston

The functioning of the superior has lately been on the center of motives of the interwar melancholy, fairly due to the examine of Professors Barry Eichengreen and Peter Temin. on the earth economic system and nationwide Economies within the Interwar hunch the interplay among the superior and the good melancholy in seven nations is tested via a world staff of economists and financial historians. The editor's creation seriously evaluates the Eichengreen-Temin thesis and Eichengreen and Temin themselves give a contribution an Afterword.

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For aggregation method and sources, see previous note. It is at an approximation to M1 (as 'M2', but including only 'sight' as opposed to all commercial bank deposits) that the growth in creditor countries ($675m) is much less than the contraction ($923m) in 'debtor' countries. But inspection of the tables in the source shows unexplained abrupt shifts from 'sight' to 'other' deposits- notably in Switzerland, so this seems an unstable level of definition. g. Foreman-Peck, Hallett and Ma (2000), pp.

Although both economies were dependent on the production and trading of commodities, Canada was perhaps relatively more vulnerable. For example, in 1919, the proportion of the labour force in non-agricultural pursuits stood at 73 per cent in the US and 67 per cent in Canada. By 1939, the size of the agricultural labour force shrank considerably in both Pierre L. 8 per cent in the US; 27 per cent in Canada) but the spread between the two actually grew. Hence, any underlying economic uncertainty might spread to uncertainty about future commodity prices.

The opposite extreme to international economic and monetary cooperation was exhibited by the USSR, whose policies contrasted markedly with those of pre-war Russia. Gregory and Sailors' instructive chapter (Chapter 8) shows how before 1914 the gold standard tied Russian output and price fluctuations quite closely to those of the world economy. However by 1922 the USSR had almost completely dissipated the still-sizeable share of world monetary gold held in Russia on the eve of the revolution (Nurkse, 1944, p.

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