Tuesday, October 9, 2012

Great Depression in charts

Gauti Eggertson's paper (pdf) claims that the US recovery from the Great Depression was driven by a shift in expectations caused by FDR's new policies:
"On the monetary policy side, Roosevelt abolished the gold standard and—even more importantly—announced the explicit objective of inflating the price level to pre-Depression levels. On the fiscal policy side, Roosevelt expanded real and deficit spending, which made his policy objective credible."
I thought the chart below was effective:

Economists often describe the regime uncertainty created by FDR's policies. Does anyone know of any charts illustrating regime uncertainty between 1930 and 1934?

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