But then we have another problem. In the chart, Japan is the best example.
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They apparently go off gold first, they have an almost immediate recovery, and they end up with the highest production. So here's my problem: Why do all these various sites e. Now, Japan had only gone back on gold the prior year, in January , so maybe that's what Krugman's dateline is based on. In other words, whoever is telling Krugman that Japan went off gold first, might be dismissing the January —December period as insignificant. Be that as it may, all five of the countries under discussion were on a gold exchange standard as of January Then, if you ask in what order did they sever their currencies' ties to gold, the actual ranking is: Germany, Britain, Japan, the United States, and France.
Notice that the "perfect" correlation cited by Krugman has broken down significantly. Yes, the 4th and 5th countries go off gold end up ranked 4th and 5th, respectively, in terms of industrial output in But the other three countries are now ranked as if the correlation is precisely the reverse of Krugman's original claim. That is, the 3rd country to go off gold Japan is ranked 1st in output, the 2nd country to go off gold Britain is ranked 2nd in output, and the 1st country to go off gold Germany is ranked 3rd in output. If we just looked at those three countries, we would conclude that "history shows" abandoning the gold standard was the way to cripple your economic recovery.
Krugman can cite other policies if he wants. That's the tack Brad DeLong takes, when he titles his version of the chart to indicate that a country needs to go off gold and start its "New Deal" for the medicine to work. I'm simply pointing out here that it seems Krugman's history concerning dates of abandoning gold is just wrong. When the "pattern" really only works for three out of five countries, it's time to drop the particular argument and find a different one to make your point.
Let's move beyond the quibbles over particular dates. If it turned out that Krugman's original ordering of historical devaluations were correct, would that give fans of the gold standard something to worry about? Not really. Remember, the appeal of the above chart is that it seems to show that from —, industrial output is proportional to the speed with which a country abandoned its currency's peg to gold. But what is so magical about —? I think the only thing objective about it is that is the first year all of these countries had abandoned their peg. If we lengthened the time frames, what would happen?
After all, the Great Depression certainly wasn't over in , so it's not clear that we're seeing the full story with Eichengreen's chart. I don't have convenient access to the raw figures, but it wouldn't surprise me if the ranking bounced around if you took a snapshot in or Naturally, the military situation in Europe would be relevant here — but then again, it was relevant in as well.
Even if we look at the data in the selected time frame, though, it's not obvious that abandoning gold should be credited with rescuing various countries' industrial output. Rather than simply comparing output to output, and then comparing the countries' ranking in this respect to the order in which they abandoned gold, we can use the above chart to see the allegedly beneficial effects of devaluation play out over time.
For example, Germany and the United States both experienced a significant rebound in the annual average of industrial output from to Krugman wants to credit the abandonment of gold with this feat. Yet France also experienced just as significant a recovery from to , even though it stayed tied to gold until So, although the chart plausibly shows the benefits to Japan and Britain for going off gold in , it certainly doesn't show the benefits to the United States and Germany.
Of course, Krugman could say that it was the United States and German recovery that lifted France as well — but that causality doesn't jump out from the chart itself. And Krugman was citing the chart as independent evidence of the stupidity of the gold standard. Finally, let's look a little more carefully at the case of the United States.
A critic of the gold standard looks at the chart above and concludes, "Sticking with gold drove the economy into the toilet, but once FDR freed the dollar from the peg in March , it was smooth sailing. But no, that's not what the chart above shows. Then, he literally set the gold price based on superstitions like "lucky numbers. See for yourself:. So, with that historical information in hand, look again at Eichengreen's allegedly damning chart. Yes, the United States enjoyed a sharp recovery in relative to output.
But it also enjoyed significant growth in and , well after the dollar had been tied again to gold at a lower parity. It's not obvious at all that it was the gold standard driving the movements of US industrial output during — Remember that "abandoning gold" isn't akin to shaving one's mustache.
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When a country dropped a peg, it effectively ripped off every investor who had been holding assets denominated in it. Thus it's not surprising that some countries could experience apparent prosperity — especially if we just look at the short run — by abandoning gold. For an analogy, someone who just bought an expensive house with no down payment, and who doesn't plan to apply for more loans anytime soon, could definitely gain a windfall by "abandoning his mortgage" assuming the bank couldn't seize the property. That doesn't mean it's a shot in the arm for the economy. Though of course, all analogies break down in our current crisis.
The pundits really do think "abandoning mortgages" would be a good idea right now! Part of what happened in the s was that the countries who stayed on gold were harmed when other governments reneged on their contractual obligations.
For example, one of the smoking guns in the antigold case is that the Federal Reserve had to raise interest rates after bringing them to unprecedented lows in , in response to Great Britain's abandonment of gold. These are idioms and Germany has plenty of them. Idioms are just expressions with a figurative meaning.
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In a way, they reveal the social and cultural background of a country. An English idiom may relate to an idiom in German, but they literally can be way different. So, learning idioms will definitely give you a creative sense of expressing your thoughts. Here are some of the German idioms and their meaning in English. Here are some to learn:. This is used when somebody acts like they are stronger or wealthier than others. It means that a deal is settled. Refers to those people who like to stay off the line, acting differently compared to the rest.
It may also have a positive meaning for someone who is just minding his own business.
Germany has a rich culture. For centuries it was the land of many intellectual people and greatest events. They influenced and shaped not just the culture of the old continent of Europe, but the culture of the whole globe.senjouin-kikishiro.com/images/bazaxem/3774.php
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Their traces are all over the place and history. Germany, with over 81 million residents, is the second most populated country in Europe just behind Rusia. Germans are known as hard-workers. Their attitude is cold and may seem unfriendly at first, but after all they are good people. Their favorite drink is beer. Germans annual consumption of beer per capita is litters, third worldwide.
Germany produces more than varieties of baked bread. Octoberfest, the greatest event of their favorite drink, the beer, is one of the many events that are held in Germany. Berlin Film Festival brings together film and art celebrities from all the world. Germans are very good at construction and automotive industries, making them one of the toughest competitors worldwide in these fields.
Their impact and presence in historical architecture is all over Europe Romanesque buildings, Gothics, Classicists, Baroque, Rococos and Renascences. Mostly there are old castles and religion objects. The tallest church in Germany is the Cathedral of Ulm The homeland of many famous intellectual people who left their mark in history, that they gave to the world, are people like Einstein and Mozart.
Germany is known as Das Land der Dichter und Denker the country of poets and thinkers. Another thing that will make you love Germany is their traditional delicious food. Here are 10 most known German foods:. Bratwursts are sausages from pork meat and are part of every barbeque in Germany. Most known are the ones from Nurnberg. Potatoes are considered to be typical German food. So, it is not a surprise they made a joke out of it. Germans eat at least a portion of this food in a day.
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