Snowden, N. (2011) Inflationary price stability and the Great Crash:an early analysis reconsidered. Cambridge Journal of Economics, 35 (5). pp. 921-936. ISSN 0309-166X
Full text not available from this repository.Abstract
The historical account of American economic conditions before the Great Crash in A. D. Gayer's Monetary Policy and Economic Stabilisation (1935A) reflects an inter-war debate over the consequences of a stable price level when underlying productivity is rising strongly. Its account evokes, in several ways, recent concern over the emergence of financial sector instability under inflation targeting regimes. A theoretical treatment of the main analysis permits both comparison between different perspectives in thinking at the time and a critical re-examination of the relevance of this thinking to modern policy dilemmas. Nominal targets may have destabilising real sector consequences.