‘Roadmap of the Great Depression with sign posts’

The Mises Institute has a veritable festschrift on what they call the Hoover-Roosevelt   Depression with emphasis on the works of Austrians, with an interesting allusion to Lee Ohanian:

The conclusion of Ohanian’s paper is quite—one is tempted to say “hardcore”—Rothbardian.

I wonder if Ohanian will appreciate that ‘compliment’!

As it could be expected wrongheaded government policy was to blame. But there´s no mention of the recovery that began in March 1933 and is associated, as Christina Romer, following Temin and Wigmore who follow Sargent says, was due to a ‘regime shift’, in this case to FDR´s decision to ‘delink’ from gold. NIRA was certainly a ‘recovery stopper’.

The chart below gives the ‘roadmap with sign posts’. I wonder if the July 1932 ‘bottom’ is associated with FDR´s nomination acceptance speech on July 2, 1932.

Mises Inst

4 thoughts on “‘Roadmap of the Great Depression with sign posts’

  1. As an admirer of much of what Rothbard wrote, I was always puzzled why his major macroeconomic history book The Great Depression stopped in 1931. We never knew what he thought of the Great Recovery. And his hardline supporters still struggle to explain it to this day.

    His softer supporters like me, like the free banking crowd, are convinced that money is too important to be left to the state. And that free market money providers did in the past, and would in the future, provide extra liquidity to cope with macro shocks. It needn’t lead to debasement, just a better service. Simple?

  2. Pingback: Skepticlawyer » Money, prices, assets and evasions of responsibility

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