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.”

Advertisements
Categories: Miscellaneous Musings
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: