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Financial Flows across Frontiers during the Interwar Depression Author(s): Harold James Source: The Economic History Review, New Series, Vol. 45, No. 3, European Special Issue (Aug., 1992), pp. 594-613 Published by: Wiley on behalf of the Economic History Society Stable URL: http://www.jstor.org/stable/2598054 . Accessed: 19/01/2014 23:29

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Economic Review, XLV, History

3(I992),

pp. 5944I3

Financial flows across frontiers during interwar the depression

By HAROLD JAMES

the Inexplaining interwar a depression, newscholarly orthodoxy, dominated by 'a striking degreeof consensus',has recently emerged.' In large part of it is a modernrestatement the widelyheld contemporary view thatafter I922 the operationof the restoredinternational gold standard(or, more a properly, new gold exchangestandard)createda pattern linkagesthat of to leftthe world'seconomiesvulnerable deflationary shocksemanating from therestrictive monetary policiesofFranceand theUS.2 The gold'sterilization' of these countriesin response to gold and exchange inflowsrestricted domesticmonetary expansionswhichmighthave balanced the contractions that were takingplace elsewhere.3 Through theirpolicies France and...