What gold gets you

This graph has been carefully lifted from Paul Krugman’s latest blog post

Great Depression recovery related to gold standard - France stuck to the gold standard longest
Great Depression recovery related to gold standard

The message to take from this? Well, France stuck to the gold standard longest during the Great Depression. Still think gold or a gold-standard currency is a good idea?  The basics of monetary policy here seem to have been forgotten. We went through all of this, and learnt about it all in the decades following the Great Depression.  Now everyone has forgotten all those lessons and are parroting the same nonsense from then.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.