Sterilization—when a central bank gains gold reserves but declines to print more money—violates the implicit rules of the gold standard and removes the self-correcting mechanism, and it played a major part in the Great Depression in both the United States and France.

causalpending

Speaker

Douglas Irwin

Evidence Quote

what happens if a central bank gets more gold, but decides not to print more money? Well, then you're really not playing by the rules of the gold standard game

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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