French central bankers and politicians were traumatized by the 1924-25 inflation (stabilized only in 1926), giving them an extreme anti-inflation stance; combined with legal restrictions on open market operations and a refusal to monetize government debt, this made them unwilling to monetize their gold inflows even as prices fell sharply in the early 1930s.

causalpending

Speaker

Douglas Irwin

Evidence Quote

French politicians, French central bankers had been traumatized by the inflation that they endured in 1924, '25

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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