Economics & Finance / Macroeconomics / Economic Crises & Recessions

These studies analyzing currency, gold, and labor markets during the Great Depression primarily

Nobel Prize in Economics Papers Series： These studies analyzing currency, gold, and labor markets during the Great Depression primarily compare the economic performance of multiple countries in the 1930s to analyze the causes of the Great Depression and its recovery mechanisms. The research points out that the gold standard was a core factor in the spread of the crisis, and countries that exited the system early achieved more effective economic recovery through monetary expansion. Nominal wage stickiness is also a key variable; because wage adjustments lag behind price declines, real wages rose, exacerbating unemployment and output declines. Furthermore, the authors emphasize the non-monetary effects of financial crises and bank failures, arguing that the disruption of credit intermediation severely weakened productive capacity. Through empirical analysis of cross-national data, the literature demonstrates the decisive role of money supply, exchange rate regime choices, and labor market adjustments in responding to severe economic recessions. In summary, this series of discussions constructs a historical explanatory framework combining aggregate supply shocks and financial market dysfunction.