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Breaking with orthodoxy

The politics of economic policy responses to the Depression of the 1930s

Bibliographic Data

ID7300787
AuthorsPeter Gourevitch (0000-0002-2698-8737, University of California System, corresponding author), Peter Alexis Gourevitch
Year1984
Volume38
Issue1
Pages95-129
Publication date1984-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueInternational Organization (JOURNAL)
Journal identifiersISSN: 0020-8183 • E-ISSN: 1531-5088
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0020818300004288
OpenAlexW2103000680
LanguageEN
Citations received54
References cited62

Under the same systemic shock, the collapse of the international economy in 1929, different countries formulated different policy responses. Britain, Germany, the United States, France, and Sweden all began by attempting the orthodoxy of deflation. Soon after, they abandoned deflation, devalued their currencies, erected tariff barriers, and set up corporatistic production and marketing arrangements. A few countries went further, and began experimenting with demand-stimulus fiscal policy. The most successful was Nazi Germany; the Swedish and U.S. efforts were much more limited and less effective, the French attempt crumbled in less than a year, and Britain never tried demand stimulus. Why this divergence in policy? The politics of policy response, the societal basis of different policy coalitions and the way in which they were expressed through different political formulations, suggests an answer. In all countries, labor, agriculture, and certain elements of business became available for revolts against policy orthodoxy. What differed across countries was the specific balance of forces among these interest groups, and the political factors that shaped their combinations. The effect of political leadership, institutions, and other variables on outcomes depended critically on the way specific social forces in each society used and worked through them

Deflation · Economics · Great Depression · Monetary economics · Monetary policy · Orthodoxy · Political economy · Political science · Politics · Stimulus (psychology · Fiscal Policies and Political Economy · History · Law · Political Influence and Corporate Strategies · Social Policy and Reform Studies

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Unique citing works54
Citations per year1,32
Citation span1985 - 2025 (41)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 54
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