Home > Miscellaneous Musings > ‘The end of Western Civilization’

‘The end of Western Civilization’

Paul Krugman is unintentionally profound when he quotes dissenting policymakers predicting the end of Western Civilization with the abrupt move away from the Gold Standard by FDR in the 1930s.

Krugman thinks he is being funny.

Looking at the relative positions of China and the US, he isn’t being funny at all.

Gauti Eggertsson writes in to follow up on my piece on quantitative easing in the Great Depression. He points me to a 2008 paper (pdf) in which he shows that the coming of FDR, combined with America’s exit from the gold standard, was seen by markets as a huge regime change; it was, said FDR’s own budget director, “the end of Western civilization.”

Categories: Miscellaneous Musings
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