The London Monetary and Economic Conference of 1933 and the End of the Great Depression: A “Change of Regime” Analysis

40 Pages Posted: 27 Feb 2017 Last revised: 11 Mar 2017

See all articles by Sebastian Edwards

Sebastian Edwards

University of California, Los Angeles (UCLA) - Global Economics and Management (GEM) Area; National Bureau of Economic Research (NBER)

Date Written: February 2017

Abstract

In this paper I analyze the London Monetary and Economic Conference of 1933, an almost forgotten episode in U.S. monetary history. I study how the Conference shaped dollar policy during the second half of 1933 and early 1934. I use daily data to investigate the way in which the Conference and related policies associated to the gold standard affected commodity prices, bond prices, and the stock market. My results show that the Conference itself did not impact commodity prices or the stock market. However, it had a small effect on bond prices. I do find that the events associated with the abandonment of the gold standard impacted prices in a significant way, even before the actual monetary and currency channels were at work. These results are consistent with the “change in regime” hypothesis of Sargent (1983).

Suggested Citation

Edwards, Sebastian, The London Monetary and Economic Conference of 1933 and the End of the Great Depression: A “Change of Regime” Analysis (February 2017). NBER Working Paper No. w23204. Available at SSRN: https://ssrn.com/abstract=2924294

Sebastian Edwards (Contact Author)

University of California, Los Angeles (UCLA) - Global Economics and Management (GEM) Area ( email )

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