Britain (under Churchill as Chancellor) chose to deflate prices and return to gold at the pre-war parity in the mid-1920s, but since prices had not fully fallen, British goods were overpriced internationally, forcing further painful deflation—a decision Keynes attacked in 'The Economic Consequences of Mr. Churchill.'
causalpending
Speaker
Douglas IrwinEvidence Quote
“when they went got back on the gold standard, the price of British goods relative to goods in the rest of the world was a bit too high, which meant they'd have to suffer some more deflation”
Created: 6/15/2026, 9:36:56 AM
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