Email Story

Does mercantilism work in a Keynesian world?

Economist's View found this 12/6/2008 on rodrik.typepad.com

Yes it does. And not just in theory, but also in practice. The evidence comes from the 1930s, and from the work of Ben Bernanke himself (along with other scholars like Barry Eichengreen).  The important finding is that countries that devalued their currencies by getting off the gold ...