The Ledger↗ Forgotten Fortunes
The 1931 sterling c...
 
Notifications
Clear all

The 1931 sterling crisis: why abandon gold?

Abandoning gold in 1931 was a dramatic admission that the old promise could not hold. Britain left gold in September 1931 amid pressure on sterling and the wider interwar monetary system.


↑ 0 votes
Quote

The gold commitment constrained policy responses at a time of severe economic uncertainty. Defending the exchange rate came with painful domestic constraints.


↑ 0 votes
QuoteReply

The departure was a dramatic monetary change, but its effects unfolded within a broader international depression. Breaking a monetary rule is only the start of an adjustment.


↑ 0 votes
QuoteReply

Political blame should not obscure how the mechanism actually worked. A documentary must distinguish political blame from the economic mechanisms that made defending the exchange rate difficult.


↑ 0 votes
QuoteReply

Would leaving earlier have helped, or damaged trust sooner?


↑ 0 votes
QuoteReply