Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957094 | Journal of Economic Theory | 2009 | 26 Pages |
Abstract
Herbert Hoover. I develop a theory of labor market failure for the Depression based on Hoover's industrial labor program that provided industry with protection from unions in return for keeping nominal wages fixed. I find that the theory accounts for much of the depth of the Depression and for the asymmetry of the depression across sectors. The theory also can reconcile why deflation/low nominal spending apparently had such large real effects during the 1930s, but not during other periods of significant deflation.
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Social Sciences and Humanities
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Economics and Econometrics
Authors
Lee E. Ohanian,