Going off the gold standard and devaluing the dollar to $35/ounce drew foreign deposits into US banks and, combined with FDIC-restored domestic deposits and RFC recapitalization, increased the high-powered money supply enough that some economists argue these monetary measures alone could have produced recovery—though later inflows owed more to capital fleeing Nazi Europe than to devaluation, confounding the verdict.

causalpending

Speaker

Eric Rauchway

Evidence Quote

the argument is that that that alone uh is is is enough uh fuel to the recovery fire, and you you would from that alone have seen uh a recovery, quite a quite a good one, in fact.

Source

Eric Rauchway on the Great Depression and the New Deal 12/01/2008EconTalk
Created: 6/17/2026, 10:09:28 AM

My Notes

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