The Gold Standard Illusion

This book examines the role of French gold policy in the Great Depression, challenging existing interpretations and shedding light on historical records.

Did French gold policy play a crucial role in causing the Great Depression? The Gold Standard Illusion delves into newly accessible French records to scrutinize the gold standard interpretation of this significant economic downturn. It presents a comprehensive history of France's economic understanding, policy-making, and political dynamics concerning gold and monetary policy from 1914 to 1939. The book highlights how financial issues contributed to political instability during this period, offering a nuanced perspective on the events leading to the Depression.

Economic historians have developed a prevailing theory that attributes the onset and severity of the Great Depression to the flawed mechanisms of the international gold standard. The Gold Standard Illusion places French gold policy at the forefront of this discussion, examining its influence on the origins, rapid spread, severity, and duration of the Depression. By utilizing new archival resources, the book evaluates the extent to which historical records in France support the gold standard interpretation, particularly considering France's reputation for hoarding gold and its adherence to gold standard rules.

The study explores four main areas: a historical overview of French gold policy within both national and international contexts, an analysis of the evolution of the Bank of France, a re-evaluation of interwar central bank cooperation, and an examination of how gold standard rhetoric shaped perceptions of financial and monetary issues. Ultimately, The Gold Standard Illusion provides insights into the exceptional French case, characterized by a steadfast belief in the gold standard and its implications for both domestic and global economic dynamics.