Economics 1021A/B Study Guide - Quiz Guide: Seigniorage, Foreign Exchange Controls, Deflation

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

High government spending end of short-war theorem": theorem that modern war was bound to be brief, given the limited resources available and the disruption economic and social life it would create. Re-organised production shifting of production from consumption goods to arms production. Rapid government capital accumulation borrowing or inflation tax. Conscription altered society & organised labor in trenches. State control of military economy germany"s war raw materials (state monopoly) Increased investment in military r&d technological advances: gold standard hypothesis (einchengreen) Gold standard responsible for the great contraction . Countries which abandoned the gold standard recovered faster than those which continued its application, and assert that no country recovered which maintained the gold standard. Trading blocs enacted - erected trade barriers against other blocs through tariffs or devaluation. With the collapse of gold standard, single global monetary policy ended and there was exchange rate volatility. Left the gold standard and oegged to the sterling pound.