FRONT PAGE – Wars in Europe
During the Great Depression that began in 1929, several countries abandoned the gold standard (including the UK), while others, such as France, remained anchored to it. This led to a collapse of international trade, which amplified and prolonged the effects of the US crisis. The lesson we should have learned is that national responses to global crises are ineffective and can be highly destabilizing, and in the case in point were partially responsible for the climate that led to the outbreak of the disastrous Second World War.
During the Great Depression that began in 1929, several countries abandoned the gold standard (including the UK), while others, such as France, remained anchored to it. This led to a collapse of international trade, which amplified and prolonged the effects of the US crisis. The lesson we should have learned is that national responses to global crises are ineffective and can be highly destabilizing, and in the case in point were partially responsible for the climate that led to the outbreak of the disastrous Second World War. Nevertheless, the scenes and statements that have been tumbling forth during the negotiations over yet another Greek bailout seem to prove that history tends to repeat itself with impressive regularity.
We dedicated our previous cover to the irresponsibility of the Greek leadership, but I think it useful to reflect upon what a Greek economist friend told me during those difficult days in July: “Not a single European institution explained to us Greeks what sacrifices we would have to endure, for how long and how our prospects might change”. He added sarcastically, “If someone had told us, we would have voted ‘yes’ on that bizarre referendum”.
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