History of the Second World War

11: The Great Depression Pt. 1 - The Crash

Jun 3, 2020
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INSIGHT

Gold Standard's Fragility

The gold standard was believed to ensure economic stability but instead created tight constraints on government actions during downturns. This fragility worsened the economic uncertainty of the post-war years.

ADVICE

Avoid Overvaluing Currency

Nations should avoid overvaluing their currencies when returning to the gold standard. An overvalued currency makes exports expensive and can harm domestic industries.

INSIGHT

Economic Protectionism's Impact

Economic protectionist measures like tariffs were implemented as political necessities but created further issues by limiting export markets. This led to greater economic hardship rather than relief.

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