Review of Trade Policy Disaster: Lessons from the 1930s

摘要

Imagine the following story: Recessions and external payments crises are raging across the world's wealthiest countries. In both the US and the UK, floating exchange rates have helped prevent worst-case scenarios. But across much of Europe, a fixed currency regime is wreaking serious havoc by intensifying recessions and magnifying external imbalances. Monetary authorities have intervened across the region to prevent insolvencies. Despite these interventions, some countries may need to abandon the currency regime.