Abstract
In accepting the title assigned for this paper, I do not mean to agree that the two stabilities necessarily conflict. Often, to be sure, they do. Countries that clung to the fixed gold parities of their currencies in the early 1930s, including France and other members of the European gold bloc until 1936, suffered worse contagion of the world depression than if they had let their currencies depreciate. Other countries mitigated the contagion by accepting relatively early depreciation, as Great Britain and the Sterling Area countries did in 1931 and as Spain did around the same time.
Reprinted from Cato Journal, 8 (Fall 1988): 261–77.
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© 1989 Springer Science+Business Media New York
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Yeager, L.B., Crain, B.W. (1989). Domestic Stability Versus Exchange Rate Stability. In: Dorn, J.A., Niskanen, W.A. (eds) Dollars Deficits & Trade. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-1288-0_3
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