Eggertsson “ Commodity Prices and the Mistake of 1937”. Vaughan / Economics 639. Mistake of 1937. Fed d ecision to double reserve requirements in three stages from August 1936 to May 1937. Rationale: Unprecedented build up of “excess” reserves in banking system.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Eggertsson“Commodity Prices and the Mistake of 1937”
Vaughan / Economics 639
↓ M2 = 2.4% (mean %Δ in post-1959 recessions = ↑7.3%)
↓ Industrial production = 31.8% (mean %Δ in post-WWII recessions = ↓8.4%)
↑ Unemployment rose to 19%