Working Paper: CEPR ID: DP589
Authors: Barry Eichengreen
Abstract: This paper surveys the economic history of Britain during the interwar years. It contrasts developments in Britain with developments elsewhere in Europe and asks in what respects was British experience distinctive. Successive sections examine the economic consequences of World War I, the performance of the interwar economy, and the legacy of interwar experience for the postwar period.
Keywords: British economy; productivity growth
JEL Codes: N10; N14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| World War I (N44) | Disruption of international trade and finance (F65) |
| Disruption of international trade and finance (F65) | Decline in Britain's international financial position (F65) |
| Decline in Britain's international financial position (F65) | Persistent balance-of-payments problems (F32) |
| Persistent balance-of-payments problems (F32) | Slower GDP growth during the interwar period (N14) |
| Government policies aimed at restoring the gold standard (F33) | Depressed output growth (O49) |
| Wartime economic policies + Post-war recovery efforts (H56) | Legacy of economic challenges (N16) |
| Legacy of economic challenges (N16) | High unemployment and stagnant productivity growth (O49) |