Question
Ben Bernanke in his paper The Macroeconomics of the Great Depression: A Comparative Approach writes: The broadening of focus [to include the study of other
Ben Bernanke in his paper "The Macroeconomics of the Great Depression: A Comparative Approach" writes:
The broadening of focus [to include the study of other countries] is important [because] by effectively expanding the data set from one observation to twenty, thirty, or more, the shift to a comparative perspective substantially improves our ability to identify-in the strict econometric sense-the forces responsible for the world depression.
Discuss at least two reasons why one might worry about using cross-country evidence to identify the role played by the gold standard in the Depression. Concretely, consider using variation in when different countries left the gold standard to identify the effects of the gold standard.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started