|Mause I 95
Goldstandard/Eichengreen: The gold standard was a rigid system of fixed exchange rates that severely limited the economic autonomy of the nation states and tended to have a procyclical effect: if a country got into economic difficulties and suffered a corresponding outflow of foreign exchange, the balance could only be restored through deflation - an adjustment path that entailed considerable social costs, especially in the form of unemployment. The international economic order based on the gold standard was only possible as long as the working class remained essentially politically excluded. (1)
The gold standard ensured that social policy regulation was largely a matter for the nation states, while the international economic order (despite moderately rising tariffs) remained liberal.
The attempt to revive the gold standard after 1932 failed, not only for political reasons, but also because the classic neoclassical economic ideas underlying this system were increasingly challenged by approaches that suggested that the state could and had to intervene in the economic cycle in a regulatory manner. KeynesVsGold Standard, see Golla (2).
1. Cf. B. Eichengreen, Marc Flandreau, Hrsg. The gold standard in theory and history, Bd. 2. London 1997.
2. G. Golla, Nachfrageseitige Konzeptionen zur Zeit der Weltwirtschaftskrise in Deutschland: Keynesianer vor Keynes? Köln 1996._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Barry J. Eichengreen
The gold standard in theory and history London 1997
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018