De Economist

, Volume 159, Issue 3, pp 305–321 | Cite as

Remilitarization and the End of the Gold Bloc in 1936



We juxtapose two hypotheses as to what destroyed the gold bloc in September 1936: the external inconsistency hypothesis—internationally uncompetitive gold bloc price-levels; versus increasing concerns for France’s national security caused by a remilitarizing Germany—the internal (to-the-gold-bloc) inconsistency hypothesis based on a greater military threat against France than neutral Switzerland and Netherlands. The hypotheses are not mutually exclusive, but support is found for the internal inconsistency hypothesis as the trigger for the French devaluation.


French devaluation German remilitarization Gold bloc international monetary system Gold standard 

JEL Classification

F33 N24 N44 


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Copyright information

© Springer Science+Business Media, LLC. 2011

Authors and Affiliations

  1. 1.University of ConnecticutStorrsUSA
  2. 2.University of GlasgowGlasgowUK
  3. 3.City UniversityLondonUK

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