Jump to ContentJump to Main Navigation
MoneyWhence It Came, Where It Went$
Users without a subscription are not able to see the full content.

John Kenneth Galbraith

Print publication date: 2017

Print ISBN-13: 9780691171661

Published to Princeton Scholarship Online: May 2018

DOI: 10.23943/princeton/9780691171661.001.0001

Show Summary Details
Page of

PRINTED FROM PRINCETON SCHOLARSHIP ONLINE (www.princeton.universitypressscholarship.com). (c) Copyright Princeton University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in PRSO for personal use.date: 20 September 2021

The Self-Inflicted Wounds

The Self-Inflicted Wounds

Chapter:
(p.190) Chapter 13 The Self-Inflicted Wounds
Source:
Money
Author(s):

John Kenneth Galbraith

James K. Galbraith

Publisher:
Princeton University Press
DOI:10.23943/princeton/9780691171661.003.0013

This chapter examines the negative consequences of Britain's return to the gold standard in 1925 and the stock market speculation in the United States in the late 1920s. In Britain, as elsewhere, prices fell in 1920 and 1921 as the wartime shortages were overcome, the budget was brought back under control, and the boom came to an end. Unemployment, which had been negligible in the preceding years, rose to 12.6 percent of the labor force in 1921. The chapter considers Winston Churchill's justification of Britain's decision to restore the pound to its prewar gold content of 123.27 grains of fine gold, its old exchange rate of $4.87, John Maynard Keynes's case against Churchill, and the stock market crash of October 1929 in the United States after the Federal Reserve Board had issued a warning against banks's use of Federal Reserve funds to finance speculation.

Keywords:   gold standard, stock market, speculation, United States, Britain, prices, Winston Churchill, John Maynard Keynes, stock market crash, banks

Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.