Explain The Supposed Causal Connection Between The Gold Standard And The Great Depression.

IntroductionThe Great Depression was the most shocking event of twentieth century in the the Statesn economic history . As a result , so m any(prenominal) economists hold that the devastation which ca utilize the depression was exaggerated by the existence of the Gold hackneyed (fixed exchange rate system . The gilt standard in this incident is a pecuniary policy whereby the government heapd dollars for specie exactly at a fixed rate . It was a m unmatchabletary rule which had been put in place by the government of America thence meaning that all concern activities could be d unitary by the use of the gold in the market at a fixed rate . This monetary system hold that the common medium of exchange was totally in notes and the point in this case is that it s easily transmutable in to fixed quantities . So the money issuers in this case redeemed their notes only on fixed amounts of gold only . So in this case , the dollar was taken as good just like the dollar hence used in trade . As a result as many economists get word to argue , any currency which is adhering to the gold standard is subject to undischarged attach hence the radio link between the gold standard and the great depression in America (Bernanke , 2000Gold standard and the Great depressionThe great depression of America of the period 1930s can be seen as one of the most important economic event in that arena . This is because it is one of the events which caused so many hardships to so many nation and an example in this case can be seen in the failure of so many banks businesses as well as the farmers in that country . As many people try to argue it , the gold system is one of the contributing factors to the great depression of the country . It was similarly during this period when the country put ware high up unemployment range of 18 .

2 , the production of goods and services likewise went down at a rate of 30 . The prices of all these goods and services also went down hence meaning that the goods were exchange at cheap prices hence the farmers were not making any profit This is evident in the sense that the farm prices went down at a rate of 50 , the world trade also desiccated . So many nations suffered a part during this period . The great depression is seen to have started with the First world War and then ended with the collapse of the gold standards and hence the gold standard can be seen as one of the causes of this great depression . It was due to the great depression which do so many nations to protect their gold reserves while at the same time increasing the interest rates of gold s and also the credit to be quite high . As a result , credit borrowing in these banks went low simply because few people could borrow these ascribe at such high interest rates (Bernanke , 2000It is also argued that...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper