11: The Great Depression Pt. 1 - The Crash
History of the Second World War
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The History of the Gold Standard
After nations returned to the gold standard, there were certain expectations put in place about how they regulated any imbalances. France and the United States had both seemingly undervalued their currencies which meant that gold started pouring into their banks. Instead of lowering interest rates so that the supply of their currency increased, this would allow for some of that gold to start flowing back out over to other nations. However, by the end of the 1920s, between France and the U.S., they had about half the entire world gold reserve stashed away,. much of it having been sterilized.
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