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Remilitarization and the End of the Gold Bloc in 1936

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Abstract

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.

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Authors and Affiliations

  1. University of Connecticut, Storrs, CT, USA

    Paul Hallwood

  2. University of Glasgow, Glasgow, UK

    Ronald MacDonald

  3. City University, London, UK

    Ian Marsh

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  1. Paul Hallwood
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  2. Ronald MacDonald
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  3. Ian Marsh
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Correspondence to Paul Hallwood.

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Hallwood, P., MacDonald, R. & Marsh, I. Remilitarization and the End of the Gold Bloc in 1936. De Economist 159, 305–321 (2011). https://doi.org/10.1007/s10645-011-9160-y

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