France's accumulation of gold without inflating its money supply (sterilization) disabled the self-correction of the price-specie-flow mechanism, so instead of France inflating to offset others' deflation, France drained gold from the rest of the world and forced other countries into a worldwide deflationary spiral.

causalpending

Speaker

Douglas Irwin

Evidence Quote

France was draining gold from the rest of the world and not inflating, but forcing other countries to deflate

Source

Douglas Irwin on the Great Depression and the Gold Standard 10/11/2010EconTalk
Created: 6/15/2026, 9:36:56 AM

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