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- W2324482821 abstract "The stabilization of the French franc and economy in mid-1926 under Premier Raymond was so dramatic that it became known as the Poincar6 miracle. This reform, and the economic problems that precipitated it, attracted considerable analytical interest during the 1920s. Lately, economists and historians have returned to reexamine this episode. Yeager [32] focused on it as an example of a country pulling back from the brink of hyperinflation. Kindleberger [14] used it as an example of the effects of destabilizing expectations. Sargent [23] pointed to it in support of the contention that a convincing change in regime can quickly stabilize an economy with high inflation without the necessity of prolonged unemployment. All three, as well as others, view the episode as one that hinged critically on a change in fiscal policy, as moved decisively to balance the budget. Our purpose is not to disagree with whether a regime change took place, or to challenge any particular view of the transition costs of stabilization.' We argue, instead, that what did was to alter immediately the nature of the monetary regime that was the source of the instability in the French economy during the 1920s. If one were to seek a historic parallel for what did, it would not be in the stabilizations that ended the big hyperinflations that Sargent [24], Yeager [32], and others [4; 17; 18] have studied. Rather, it would be in the spirit of the famous Accord worked out between the U.S. Treasury and the Federal Reserve in 1951.2" @default.
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- W2324482821 date "1989-07-01" @default.
- W2324482821 modified "2023-09-26" @default.
- W2324482821 title "A Monetary Interpretation of the Poincare Stabilization of 1926" @default.
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- W2324482821 doi "https://doi.org/10.2307/1059066" @default.
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