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To: goldsnow who wrote (9282)	4/4/1998 3:30:00 AM
From: Alex	Read Replies (2) \| Respond to of 116774

Thanks very much for the insight goldsnow. I have been searching for an answer to the quest posed by Ole 49r. Needless to say, I'm seeing double by now, but I've had a blast and learned a lot. Yet I have not found the answer I was looking for - at least not all of it. The link below may, or may not, hold a clue.................. Gold, France, and the Great Depression, 1919-1932 H. Clark Johnson <Picture> September 1997 History/Economics 256 pp. illus. 6 1/8 x 9 1/4 ISBN 0-300-06986-3 $27.50 H. Clark Johnson develops a convincing and original narrative of the events that led to the major economic catastrophe of the twentieth century. He identifies the undervaluation and consequent shortage of world gold reserves after World War I as the underlying cause of a sustained international price deflation that brought the Great Depression. And, he argues, the reserve-hoarding policies of central banks--particularly the Bank of France--were its proximate cause. The book presents a detailed history of the events that culminated in the depression, highlighting the role of specific economic events, national policies, and individuals. Johnson's analysis of how French domestic politics, diplomacy, economic ideology, and monetary policy contributed to the international deflation is new in the literature. He reaches provocative conclusions about the functioning of the pre-1914 gold standard, the spectacular postwar movement of gold to India, the return of sterling to prewar parity in 1925, the German reparations controversy, the stock market crash of 1929, the Smoot-Hawley tariff of 1930, the central European banking crisis of 1931, and the end of sterling convertibility in 1931. The book also provides a nuanced picture of Keynes during the years before his General Theory and deals at length with the history of economic thought in order to explain the failure of recent scholarship to adequately account for the Great Depression. "Johnson has provided the first systematic study of the important, possibly pervasive, role played by French monetary policy in forcing a major deflation of the world economy which may account, in large measure, for the depth of the depression. Subsequent work on the Great Depression will, I believe, acknowledge his pioneering work."--Gail E. Makinen, Library of Congress H. Clark Johnson is an economist with the Joint U.S.-Saudi-Arabian Commission for Economic Development. Yale Historical Publication

To: goldsnow who wrote (9282)	4/4/1998 1:56:00 PM
From: goldsnow	Respond to of 116774

Singapore's Lee says Japan reform crucial for Asia 10:35 a.m. Apr 04, 1998 Eastern HAMBURG, April 4 (Reuters) - The world economy could plunge into turmoil if Japan does not reform its economy and financial system to stem the tide of Asia's financial crisis, Singapore Senior Minister Lee Kuan Yew said in an interview in Germany. ''If Japan doesn't revive its economy, it could come to worldwide deflation,'' he said according to a pre-publication of an interview due to appear on Monday in newsweekly Der Spiegel. ''Then Tokyo would get its dollar bonds out of the United States. The crisis is still limited to Asia, but if Japan continues to fail to muster the the political will to get its economy in order, the problems will spill over,'' said Lee. In contrast, German Economics Minister Guenter Rexrodt said in separate interview that he did not think Japan's troubles could lead to an international spiral of deflation. ''At this point I see no danger of grave consequences for the world economy or for Germany in particular,'' Rexrodt told the Welt am Sonntag newspaper. However, Rexrodt also said Japan is not moving fast enough to boost its economy in the wake of Asia's financial crisis. Like Rexrodt, Lee said Asia needs Japan to lead a fundamental restructuring of its economic and industrial foundation. ''Japan must go forward with it,'' he said. Lee, a former prime minister, added that China had been protected from the financial crisis so far because its currency is not fully convertible. But he warned that China will see greater competition from its neighbors. ''In a year, 18 months, it will be hard for Beijing. The Chinese are losing market share for low-wage production. Machines for shoes and textiles are being packed up and moved to Thailand or Indonesia,'' Lee said. ((Neal Boudette, Frankfurt Newsroom, +49 69 756525, frankfurt.newsroom+reuters.com))+