Logged out
Access All our Essays in an Instant
Swap your work for FREE access, or pay £4.99 for instant access
“It was a supply-side shock, not deflationary monetary and fiscal policies, which initiated depression in 1920 and contributed to the subsequent slump”. Discuss.
Member rating: No Rating | Words: | Submitted: Tue Jun 20 2006
Page Preview
On the left is an image preview of every page of this document, and below are the first 150 words with formatting removed:
"It was a supply-side shock, not deflationary monetary and fiscal policies, which initiated depression in 1920 and contributed to the subsequent slump". Discuss. Jaede Tan December 2004 During the immediate aftermath of the First World War, Britain experienced an economic boom, during which nominal wages, real G.D.P and industrial output all rose, whilst wholesale prices rocketed to three times their pre-war levels1. The boom effectively lasted just over a year, starting roughly six months after the war ended, and breaking in the second quarter of 1920. Howson estimates that by the end of 1919 both industrial output and real G.D.P had risen to their 1913 pre-war levels, whilst Pigou states that between April 1919 and April 1920, nominal income rose roughly 25-35%.2 Whilst the causes for the boom are generally and widely attributed to demand-side factors, such as increased consumer saving during the later years of WWI and hence a build up of...
Get instant access
- Instant, unlimited access to our documents in full
- Swap your work for free access, or pay £4.99
- To see the full version of this document and 149,488 others
