ECON 372 Study Guide - Midterm Guide: Interest Rate Parity, Money Supply, Diminishing Returns
4 Apr 2018
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What were the constraints facing nations in their return to belle poque levels of integration: inflated price levels (differences matter, declining commodity & industrial prices, lost access to foreign markets, calls for protection, a general environment of distrust. National prestige and a signal of financial orthodoxy. Output contracts in the us by 30%. Black tuesday (wall street crash of 1929) Fed"s tight monetary policy in 1928/9 and bank failures. If you view an interest rate as a price of money, then higher price equals lower demand. What were the policy options available to countries when the great. Rise in political extremism due to economic hardship from the great depression. Trade bust due to higher transportation costs. Attempts at expanding empires to acquire more resources. What percentage of the world capital and gold stocks did the us hold in. Role of the us dollar as anchor in a gold exchange standard of fixed-but adjustable nominal exchange rates.
